Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 30, 2018

OR

☐

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 001-34775

FABRINET

(Exact name of
registrant as specified in its charter)

Cayman Islands

Not Applicable

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

c/o Intertrust Corporate Services (Cayman) Limited

190 Elgin Avenue

George
Town

Grand Cayman

Cayman Islands

KY1-9005

(Address of principal executive offices)

(Zip Code)

+66 2-524-9600

(Registrants telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 (the Exchange Act) during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days: Yes ☒ No ☐

Indicate by check mark whether the registrant has
submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, a smaller reporting company or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company and emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐ (Do not check if smaller reporting company)

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). ☐ Yes ☒ No

As of April 27, 2018, the registrant had 36,904,455
ordinary shares, $0.01 par value, outstanding.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within
the unaudited condensed consolidated balance sheets that sum to the total of the same amounts shown in the unaudited condensed consolidated statements of cash flows:

(amount in thousands)

As ofMarch 30,2018

As ofMarch 31,2017

Cash and cash equivalents

$

142,407

$

136,634

Restricted cash in connection with business acquisition
(non-current assets)

3,569

3,175

Cash, cash equivalents and restricted cash

$

145,976

$

139,809

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Fabrinet (Fabrinet or the Parent Company) was incorporated on August 12, 1999, and commenced operations on
January 1, 2000. The Parent Company is an exempted company incorporated in the Cayman Islands, British West Indies. The Company refers to Fabrinet and its subsidiaries as a group.

The Company provides advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original
equipment manufacturers (OEMs) of complex products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a broad
range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging,
integration, final assembly and test. The Company focuses primarily on the production of low-volume,high-mix products. The principal subsidiaries of Fabrinet include
Fabrinet Co., Ltd. (Fabrinet Thailand), Casix, Inc. (Casix), Fabrinet West, Inc. (Fabrinet West) and Fabrinet UK Ltd. (Fabrinet UK), which was formerly known as Exception EMS.

2.

Accounting policies

Basis of presentation

The accompanying unaudited condensed consolidated financial statements for Fabrinet as of March 30, 2018 and for the three and nine months
ended March 30, 2018 and March 31, 2017 include normal recurring adjustments, necessary for a fair statement of the financial statements set forth herein, in accordance with accounting principles generally accepted in the United States of
America (U.S. GAAP) for interim financial information and the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, such information does not include all of the information and footnotes required
by U.S. GAAP for annual financial statements. For further information, please refer to the consolidated financial statements and footnotes thereto included in Fabrinets Annual Report on Form 10-K for the
year ended June 30, 2017.

The balance sheet as of June 30, 2017 has been derived from the audited financial statements at that
date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The results for the three and nine months ended March 30, 2018 may not be indicative of results for the year ending
June 29, 2018 or any future periods.

On September 14, 2016, the Company acquired 100% shareholding in Global CEM Solutions, Ltd.
and all of its subsidiaries (including Fabrinet UK), a privately-held group located in Wiltshire, United Kingdom. The unaudited condensed consolidated financial statements of the Company include the financial position, results of operations and
the cash flows of Fabrinet UK commencing as of the acquisition date. See Note 8Business acquisition for further details on the accounting for this transaction.

Use of Estimates

The preparation of the Companys unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amount of total revenues and expenses during the year. The
Company bases estimates on historical experience and various assumptions about the future that are believed to be reasonable based on available information. The Companys reported financial position or results of operations may be materially
different under different conditions or when using different estimates and assumptions, particularly with respect to significant accounting policies, which are discussed below. Significant assumptions are used in accounting for share-based
compensation, allowance for doubtful accounts, income taxes, inventory obsolescence, goodwill and valuation of intangible assets related to business acquisition, among others. Due to the inherent uncertainty involved in making estimates, actual
results reported in future periods may be different from these estimates. In the event that estimates or assumptions prove to differ from actual results, adjustments will be made in subsequent periods to reflect more current information.

The Company utilizes a 52-53 week fiscal year ending on the Friday in June closest to June 30. The
three months ended March 30, 2018 and March 31, 2017 each consisted of 13 weeks. The nine months ended March 30, 2018 and March 31, 2017 consisted of 39 weeks and 40 weeks, respectively. Fiscal year 2018 will be comprised of 52
weeks and will end on June 29, 2018.

Concentration of credit risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash and cash equivalents, marketable
securities, derivatives and accounts receivable.

Cash, cash equivalents and marketable securities are maintained with several financial
institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear
minimal credit risk. The Company seeks to mitigate its credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. The Company limits its investments in marketable securities to
securities with a maturity not in excess of three years, and all marketable securities that the Company invests in are rated A1, P-1, F1, or better.

The Company performs ongoing credit evaluations for credit worthiness of its customers and usually does not require collateral from its
customers. Management has implemented a program to closely monitor near term cash collection and credit exposures to mitigate any material losses.

New Accounting Pronouncements  not yet adopted by the Company

In November 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-14, Income Statement  Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606): Amendments to SEC Paragraphs Pursuant to the
Staff Accounting Bulletin (SAB) No. 116 and SEC Release No. 33-10403. This ASU amended, superseded and added certain SEC paragraphs in Topic 220, Topic 605 and Topic 606 to reflect
the August 2017 issuance of SEC Staff Accounting Bulletin (SAB) 116 and SEC Release No. 33-10403. The SEC staff issued SAB 116 to align its revenue guidance with Accounting Standards Codification (ASC)
606. For public business entities, this update is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact
of the adoption of this update on its consolidated financial statements.

In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842): Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the
July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments. The amendment delays the mandatory adoption of Topic 606 and Topic 842 for certain entities, revises the guidance related to
performance-based incentive fees in Topic 605 and revises the guidance related to leases in Topic 840 and Topic 842. The revisions to the lease guidance eliminate language specific to certain sale-leaseback arrangements, guarantees of lease residual
assets and loans made by lessees to owner-lessors. Also included is an amendment to Topic 842 to retain the guidance in Topic 840 covering the impact of changes in tax rates on investments in leveraged leases. This guidance, which is effective
immediately, generally relates to the adoption of Topic 606 and Topic 842. The Company does not expect the amendments will impact its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-04, Intangibles  Goodwill and Other (Topic 350):
Simplifying the Test for Goodwill Impairment. This amendment modified the concept of impairment assessment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the
carrying amount of a reporting unit exceeds its fair value. Public companies that are SEC filers should adopt the amendment for its annual and any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early
adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic
250) and Investments  Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings. The amendment provides guidance to
the Company in relation to the disclosure of the impact that ASU 2014-09, ASU 2016-02 and ASU 2016-13 will have on the
Companys financial statements when adopted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01,
Business Combination (Topic 805): Clarifying the Definition of a Business. This amendment clarifies the definition of a business to assist entities when evaluating whether transactions should be accounted for as acquisitions (or
disposals) of assets or business. For public companies, this ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. Early adoption is permitted for the transactions that occur
before the issuance date or effective date of the amendment, only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company does not expect that the adoption of this update
will have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU
2016-15, Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force). The amendments in this ASU provide guidance on the presentation of certain cash
receipts and cash payments in the statement of cash flows in order to reduce diversity in existing practice. The amendments in ASU 2016-15 are effective for public business entities for fiscal years beginning
after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of the adoption of this update on its consolidated
financial statements.

In February 2016, the FASB issued ASU 2016-02, Lease (Topic
842). The core principle of Topic 842 is that a lessee should recognize the lease assets and liabilities that arise from leases in the statement of financial position. For public business entities, this update is effective for fiscal years
beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of this update on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments  Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This new guidance requires certain equity investments to be measured at fair value, use of the exit price notion and separate
presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements. The ASU on recognition and measurement will take effect for
public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In addition, in February 2018, the FASB issued ASU 2018-03, Technical
Corrections and Improvements to Financial Instruments  Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance clarifies certain aspects of the
guidance issued in ASU 2016-01 on (1) equity securities without a readily determinable fair value  discontinuation, (2) equity securities without a readily determinable fair value 
adjustments, (3) forward contracts and purchased options, (4) presentation requirements for certain fair value option liabilities, and (5) fair value option liabilities denominated in a foreign currency. The Company is currently
evaluating the impact of the adoption of this update on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), issued as a new Topic, Accounting Standards Codification. The core principle of this amendment is that an entity should recognize revenue to
depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update is effective for public companies, as amended
by ASU 2015-14, for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Earlier application of this guidance is permitted, but not before
the original date of December 15, 2016, which can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. Subsequently, in March 2016 and April 2016, the FASB
issued ASU 2016-08 and ASU 2016-10, respectively, to clarify the implementation guidance on principle versus agent considerations and address the potential diversity in
practice at initial application and cost; and the complexity of applying Topic 606, both at transition and on an ongoing basis related to identification of performance obligations and licensing arrangements; and ASU
2016-12 and ASU 2016-20 in May 2016 and December 2016, respectively, to improve certain aspects of Topic 606, with the same effective date as ASU 2015-14. The Company will adopt this standard during its fiscal year ending June 28, 2019. In the current period, the Company is assessing the contracts with its customers to identify the impact to its
consolidated financial statements. The Company expects to conclude the impact to its consolidated financial statements in the coming quarter.

In February 2018, the FASB issued ASU 2018-02 Income Statement  Reporting Comprehensive
Income (Topic 220), Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU which allows companies to reclassify stranded tax effects in accumulated other comprehensive income (loss) that have been caused
by the Tax Cuts and Jobs Act of 2017 (the Act) to retained earnings for each period in which the effect of the change in the U.S. federal corporate income tax rate is recorded. The FASB has made the reclassification optional. In addition, in
March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118, which updates the income tax accounting in
U.S. GAAP to reflect SEC guidance released on December 22, 2017, when the Act was signed into law. The Company adopted these updates with no impact to the unaudited condensed consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted
Improvements to Accounting for Hedging Activities. The amendments better align an entitys risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for
qualifying hedging relationships and the presentation of hedge results. To meet that objective, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the
effects of the hedging instrument and the hedged item in the financial statements. The amendments also make certain targeted improvements to simplify the application of hedge accounting guidance and ease the administrative burden of hedge
documentation requirements and assessing hedge effectiveness. This ASU is the final version of Proposed Accounting Standards Update 2016-310Derivatives and Hedging (Topic 815): Targeted Improvements to
Accounting for Hedging Activities, which has been deleted. During the first nine months of fiscal year 2018, the Company adopted this update with no impact to the unaudited condensed consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted
Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents and restricted cash or restricted cash equivalents. The Company has early adopted this update in the second quarter
of fiscal year 2017 on a retrospective basis. As of March 30, 2018, restricted cash in connection with business acquisition of $3.6 million was presented in the statement of cash flows as cash, cash equivalents and restricted cash.

In March 2016, the FASB issued ASU 2016-09, Compensation  Stock Compensation (Topic
718): Improvements to Employee Share-Based Payment Accounting. This ASU simplifies several aspects of the accounting for share-based payment award transactions, including, the income tax consequences, classification of awards as either equity
or liabilities and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, for public companies. Early
adoption is permitted for any entity in any interim or annual period. During the first nine months of fiscal year 2018, the Company adopted this update with no impact to the unaudited condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-05, Derivatives and Hedging (Topic 815), to clarify
that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument under Topic 815, does not, in and of itself, require designation of the hedging relationship, provided that all other hedge accounting
criteria continue to be met. This guidance is effective for public entities for financial statements issued for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. During the first nine months of fiscal
year 2018, the Company adopted this update with no impact to the unaudited condensed consolidated financial statements.

3.

Earnings per ordinary share

Basic earnings per ordinary share is computed by dividing
reported net income by the weighted-average number of ordinary shares outstanding during each period. Diluted earnings per ordinary share is computed by calculating the effect of potential dilutive ordinary shares outstanding during the period using
the treasury stock method. Dilutive ordinary equivalent shares consist of share options, restricted share units and performance share units. Earnings per ordinary share was calculated as follows:

All highly liquid investments with original maturities of three months or less at the date of
purchase are classified as cash equivalents. Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date. The Company may sell certain of its marketable
securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. The maturities of the Companys marketable securities generally range from three
months to three years. The Companys investments in marketable securities consist of investments in U.S. Treasuries and fixed income securities and have been classified and accounted for as available-for-sale.

The following table summarizes the cost and estimated fair value of
marketable securities classified as available-for-sale securities based on stated effective maturities as of March 30, 2018:

(amount in thousands)

Carrying Cost

Fair Value

Due within one year

$

13,181

$

13,174

Due between one to three years

157,385

156,270

Total

$

170,566

$

169,444

During the nine months ended March 30, 2018, the Company recognized a realized loss of $0.4 million
from sales and maturities of available-for-sale securities.

As of March 30, 2018, the Company considered the declines in market value of its marketable securities investment portfolio to be
temporary in nature and did not consider any of its securities other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The
policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an
investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market
interest rates, and the Companys intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investments cost basis. No impairment losses were recorded for the nine months
ended March 30, 2018.

As of March 30, 2018, cash, cash equivalents, and marketable securities included bank deposits of
$40.0 million held in various financial institutions located in the United States in order to support the availability of the Facility Agreement (as defined in Note 11) and comply with covenants. As discussed in Note 11, under the terms and
conditions of the Facility Agreement, the Company must maintain cash, cash equivalents and marketable securities in an aggregate amount not less than $40.0 million in unencumbered deposits, and/or securities in accounts located in the United
States at all times during the term of the Facility Agreement. The Company must comply with this covenant from and after the effective date of the Facility Agreement.

5.

Fair value of financial instruments

Fair value is defined as the exchange price that
would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value
hierarchy is established which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs for the valuation of an asset or liability as of measurement date. The three levels of inputs that may be used to
measure fair value are defined as follows:

Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for assets or
liabilities, either directly or indirectly. If the assets or liabilities have a specified (contractual) term, Level 2 inputs must be observable for substantially the full term of assets or liabilities.

Level 3 inputs are unobservable inputs for assets or liabilities, which require the reporting entity to develop its own valuation
techniques and assumptions.

The Company utilizes the market approach to measure fair value for its financial assets and liabilities. The
market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

The following table provides details of the financial instruments measured at fair value on a
recurring basis, including:

Fair Value Measurements at Reporting Date Using

(amount in thousands)

Level 1

Level 2

Level 3

Total

As of March 30, 2018

Assets

Cash equivalents

$



$

15,128

$



$

15,128

Corporate bonds and commercial papers



124,542



124,542

U.S. agency and U.S. treasury securities



40,629



40,629

Sovereign and municipal securities



4,273



4,273

Derivative assets









Total

$



$

184,572

$



$

184,572

Liabilities

Derivative liabilities



$

29

(1)



$

29

Total

$



$

29

$



$

29

Fair Value Measurements at Reporting Date Using

(amount in thousands)

Level 1

Level 2

Level 3

Total

As of June 30, 2017

Assets

Cash equivalents

$



$

2,585

$



$

2,585

Corporate bonds and commercial papers



98,274



98,274

U.S. agency and U.S. treasury securities



50,666



50,666

Sovereign and municipal securities



2,510



2,510

Derivative assets



15

(2)



15

Total

$



$

154,050

$



$

154,050

(1)

Foreign currency forward contracts with notional amount of $14.0 million and Canadian Dollars 0.1 million.

(2)

Foreign currency forward contracts with notional amount of $1.0 million and Canadian Dollars 0.6 million.

Derivative Financial Instruments

As a result of foreign currency rate fluctuations, the U.S. dollar equivalent values of the Companys foreign currency denominated assets
and liabilities change. The Company uses foreign currency contracts to manage the foreign exchange risk associated with certain foreign currency denominated assets and liabilities and other foreign currency transactions. The Company minimizes the
credit risk in derivative instruments by limiting its exposure to any single counterparty and by entering into derivative instruments only with counterparties that meet the Companys minimum credit quality standard. As of March 30, 2018,
the Company recognized the fair value of foreign currency forward contracts of $0.03 million as derivative liabilities in the unaudited condensed consolidated balance sheet under other current liabilities. As of June 30, 2017, the Company
recognized the fair value of foreign currency forward contracts of $0.02 million as derivative assets in the consolidated balance sheet under other current assets.

As of March 30, 2018, the Company had 6 outstanding foreign currency forward contracts with an aggregate notional amount of
$14.0 million and Canadian dollars 0.1 million, maturing during April to June 2018. These foreign currency forward contracts were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of
forecasted transactions denominated in Thai baht and Canadian dollar. During the nine months ended March 30, 2018, the Company included an unrealized loss of $30 thousand from changes in the fair value of foreign currency contracts in
earnings as foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income.

As of March 31, 2017, the Company had no foreign currency forward contracts designated as
cash flow hedges. During the nine months ended March 31, 2017, the Company discontinued cash flow hedges and recognized a gain from unwinding foreign currency forward contracts of $0.3 million as foreign exchange gain, net in the unaudited
condensed consolidated statements of operations and comprehensive income.

As of March 31, 2017, the Company had one outstanding
foreign currency forward contract with an aggregate notional amount of Canadian dollars 0.5 million, maturing in June 2017. This foreign currency forward contract was not designated for hedge accounting and was used to hedge fluctuations in the
U.S. dollar value of forecasted transactions denominated in Canadian dollar. During the nine months ended March 31, 2017, the Company included unrealized loss of $8.0 thousand from changes in the fair value of foreign currency contracts in
earnings as foreign exchange loss, net in the unaudited condensed consolidated statements of operations and comprehensive income.

6.

Trade accounts receivable, net

(amount in thousands)

As ofMarch 30,2018

As ofJune 30,2017

Trade accounts receivable

$

244,081

$

264,389

Less: allowance for doubtful account

(84

)

(40

)

Trade accounts receivable, net

$

243,997

$

264,349

As of June 30, 2017, trade accounts receivable of $3.0 million were secured to short-term loans from
bank. During the three months ended September 29, 2017, these loans were fully repaid and the secured trade accounts receivable were released.

7.

Inventory

(amount in thousands)

As ofMarch 30,2018

As ofJune 30,2017

Raw materials

$

90,024

$

88,640

Work in progress

114,348

105,732

Finished goods

24,010

33,998

Goods in transit

13,674

13,025

242,056

241,395

Less: Inventory obsolescence

(2,439

)

(2,730

)

Inventory, net

$

239,617

$

238,665

8.

Business acquisition

On September 14, 2016, the Company acquired 100% shareholding
in Fabrinet UK (formerly known as Exception EMS), a privately-held group located in Wiltshire, United Kingdom, for cash consideration of approximately $13.0 million, net of $0.5 million cash acquired. Fabrinet UK provides
contract electronics manufacturing services to the global electronics industry with innovative solutions, adding value to the design, manufacture and testing of printed circuit board assemblies. Pursuant to the acquisition agreement, the Company has
placed $3.4 million of cash, net of foreign currency translation adjustment, for deferred consideration in an escrow account which is under the Companys control. However, the Company has contractually agreed to remit this deferred
consideration to the sellers of Fabrinet UK, subject to the resolution of claims that the Company may make against the funds with respect to indemnification and other claims, within 24 months from the closing date of the transaction.

The Company has accounted for this acquisition under the provisions of business combinations accounting, in accordance with Accounting
Standards Codification Topic 805  Business Combinations. Accordingly, the estimated fair value of the acquisition consideration was allocated to the assets acquired and the liabilities assumed based on their respective fair values on the
acquisition date. The Company has made certain estimates and assumptions in determining the allocation of the acquisition consideration.

The allocation of consideration to the individual net assets acquired was finalized in the fourth
quarter of fiscal year 2017. As the functional currency of Fabrinet UK is pound sterling (GBP), for the nine months ended March 30, 2018 and March 31, 2017, the Company recognized a $1.4 million gain and a
$0.9 million loss, respectively, from foreign currency translation adjustment in its unaudited condensed consolidated statements of operations and comprehensive income under other comprehensive income, net of tax.

The Companys allocation of the total purchase price for the acquisition is summarized below:

(amount in thousands)

Purchase priceallocation

Cash

$

474

Accounts receivable

4,064

Inventory

3,490

Other current assets

427

Property, plant and equipment

5,678

Intangibles

4,492

Goodwill

3,883

Other non-current assets

516

Current liabilities

(6,796

)

Deferred tax liabilities

(1,148

)

Other non-current liabilities

(1,563

)

Total fair value of assets acquired and liabilities assumed

$

13,517

Total purchase price, net of cash acquired

$

13,043

In connection with the Companys acquisition of Fabrinet UK, the Company assumed lease agreements for
certain machine and equipment, which are accounted for as capital leases. As of March 30, 2018 and June 30, 2017, the Company included approximately $1.6 million and $1.9 million, respectively, of capital lease assets and
$1.2 million and $1.4 million, respectively, of capital lease liability in the unaudited condensed consolidated balance sheets associated with these acquired lease agreements.

During the nine months ended March 31, 2017, the Company incurred approximately $1.5 million in transaction costs related to the
acquisition, which primarily consisted of legal, accounting and valuation-related expenses. These expenses were recorded in selling, general and administrative expense in the accompanying unaudited condensed consolidated statements of operations and
comprehensive income.

During the nine months ended March 30, 2018, there were no transaction costs related to the acquisition.

Pro forma results of operations for the acquisition have not been presented as they were not material to the Companys results of
operations.

Identifiable intangibles

The acquired intangible assets include customer relationships and backlog. The fair value of the identified intangible assets was determined
based on the multi-period excess earnings method.

Customer relationships represent the fair value of future projected revenues that were
derived from the sale of products to existing customers of the acquired company. The $4.4 million in fair value of customer relationships will be amortized over an estimated remaining useful life of ten years.

Backlog represents the fair value of sales orders backlog as of the valuation date. The $0.1 million in fair value of backlog will be
amortized over the respective estimated remaining useful life of three years.

The Company recorded amortization expense relating to intangibles of $0.5 million and $0.9 million
for the three months ended March 30, 2018 and March 31, 2017, respectively, and $1.4 million and $1.1 million for the nine months ended March 30, 2018 and March 31, 2017, respectively.

The weighted-average remaining life of customer relationships and backlog are:

(years)

As of March 30,2018

As of June 30,2017

Customer relationships

6.3

6.9

Backlog

1.1

1.6

Based on the carrying amount of intangibles as of March 30, 2018, and assuming no future impairment of
the underlying assets, the estimated future amortization during each fiscal year was as follows:

(amount in thousands)

2018 (remaining three months)

$

505

2019

1,675

2020

1,146

2021

993

2022

724

Thereafter

884

Total

$

5,927

10.

Goodwill

The changes in the carrying amount of goodwill from the acquisition of
Fabrinet UK were as follows:

Goodwill is not deductible for tax purposes. Goodwill will not be amortized but is reviewed annually for
impairment or more frequently whenever changes or circumstances indicate the carrying amount of goodwill may not be recoverable.

11.

Borrowings

The Companys total borrowings, including short-term and long-term
borrowings, consisted of the following:

(amount in thousands)

Rate

Conditions

Maturity

As ofMarch 30,2018

As ofJune 30,2017

Short-term borrowings:

Revolving borrowing:

LIBOR(1) + 1.75% per annum

Repayable in

1 to 6 months

April 2018

(2)

$

39,000

$

34,000

Short-term loans from bank:

Bank Base rate +1.85% per annum

Repayable based on

credit terms of secured accounts receivable



1,003

Current portion of long-term borrowing

13,600

13,600

52,600

48,603

Less: Unamortized debt issuance costs

(136

)

(201

)

$

52,464

$

48,402

Long-term borrowings:

Term loan borrowing:

LIBOR +1.75% per annum

Repayable in quarterly installments

May 2019

$

26,200

$

36,400

Less: Current portion

(13,600

)

(13,600

)

Unamortized debt issuance costs

(5

)

(99

)

Non-current portion

$

12,595

$

22,701

(1)

LIBOR is London Interbank Offered Rate.

(2)

In March 2018, the maturity date was extended to April 2018.

The movements of long-term loans for the nine months ended March 30, 2018 and March 31, 2017 were as follows:

As of March 30, 2018, future maturities of long-term debt during each fiscal year were as
follows:

(amount in thousands)

2018 (remaining three months)

$

3,400

2019

22,800

Total

$

26,200

Credit facilities:

Fabrinet entered into a syndicated senior credit facility agreement (the Facility Agreement) with a consortium of banks on
May 22, 2014. The Facility Agreement, led by Bank of America, provides for a $200.0 million credit line, comprised of a $150.0 million revolving loan facility and a $50.0 million delayed draw term loan facility. The revolving
loan facility contains an accordion feature permitting Fabrinet to request an increase in the facility up to $100.0 million subject to customary terms and conditions and provided that no default or event of default exists at the time of
request. The revolving loan facility terminates and all amounts outstanding are due and payable in full on May 22, 2019. The principal amount of any drawn term loans must be repaid according to scheduled quarterly amortization payments, with
final payment of all amounts outstanding, plus accrued interest, being due May 22, 2019.

On February 26, 2015, the Company
entered into the Second Amendment to the Facility Agreement. The amendment extended the availability period for draws on the term loan facility from May 21, 2015 to July 31, 2015. It also allowed the Company, upon the satisfaction of
certain conditions, to designate from time to time one or more of its subsidiaries as borrowers under the Facility Agreement. On July 31, 2015, the Company entered into the Third Amendment to the Facility Agreement. The amendment extended the
availability period for draws on the term loan facility from July 31, 2015 to July 31, 2016. On July 22, 2016, the Company entered into the Fourth Amendment to the Facility Agreement to change the timing of filing certain financial
information with the bank. The Company fully drew down the term loan facility in fiscal year 2016. As of March 30, 2018, $39.0 million of the revolving borrowing and $26.2 million of the term loan borrowing was outstanding under
the Facility Agreement, resulting in available credit facilities of $111.0 million. Borrowings under the revolving credit facility are classified as current liabilities in the unaudited condensed consolidated balance sheets as the Company has
the periodic option to renew or pay, all or a portion of, the outstanding balance at the end of the maturity date, which is in the range of one to six months, without premium or penalty, upon notice to the administrative agent. During March 2018,
the Company sent notices to the bank to renew the maturity date of its revolving borrowings. The bank approved the notices and extended the maturity to April 2018.

Loans under the Facility Agreement bear interest, at Fabrinets option, at a rate per annum equal to a LIBOR rate plus a spread of 1.75%
to 2.50%, or a base rate plus a spread of 0.75% to 1.50%, determined in accordance with the Facility Agreement in each case with such spread determined based on Fabrinets consolidated total leverage ratio for the preceding four fiscal quarter
period. Interest is due and payable quarterly in arrears for loans bearing interest at the base rate and at the end of an interest period (or at each three-month interval in the case of loans with interest periods greater than three months) in the
case of loans bearing interest at the LIBOR rate.

On July 24, 2017, the Company entered into an interest rate swap agreement (the
Swap Agreement), which the Company did not designate as hedging instruments. The Swap Agreement was used to mitigate interest rate risk and improve the interest rate profile of the Companys debt obligations. The terms of the Swap
Agreement effectively convert the floating interest rate of the term loans under the Facility Agreement to the fixed interest rate of 1.55% per annum through maturity of the term loan in May 2019. The swap transactions are due and settled
monthly. During the nine months ended March 30, 2018, the Company included a net loss of $0.04 million from the settlement of the Swap Agreement as interest expenses in the unaudited condensed consolidated statements of operations and
comprehensive income.

Fabrinets obligations under the Facility Agreement are guaranteed by certain of its existing and future direct
material of its subsidiaries. In addition, the Facility Agreement is secured by Fabrinets present and future accounts receivable, deposit accounts and cash, and a pledge of the capital stock of certain of Fabrinets direct subsidiaries.
Fabrinet is required to maintain at least $40.0 million of cash, cash equivalents, and marketable securities at financial institutions located in the United States. Further, Fabrinet is required to maintain any of its deposits accounts or
securities accounts with balances in excess of $10.0 million in a jurisdiction where a control agreement, or the equivalent under the local law, can be effected.

The Facility Agreement contains customary affirmative and negative covenants. Negative covenants
include, among other things, limitations on liens, indebtedness, investments, mergers, sales of assets, changes in the nature of the business, dividends and distributions, affiliate transactions and capital expenditures. The Facility Agreement
contains financial covenants requiring Fabrinet to maintain: (1) a minimum tangible net worth of not less than $200.0 million plus 50% of quarterly net income, exclusive of quarterly losses; (2) a minimum debt service coverage ratio
of not less than 1.50:1.00; (3) a maximum senior leverage ratio of not more than 2.50:1.00; and (4) a minimum quick ratio of not less than 1.10:1.00. Each of these financial covenants is calculated on a consolidated basis for the consecutive
four fiscal quarter period then ended. As of March 30, 2018, the Company was in compliance with all covenants under the Facility Agreement.

The Facility Agreement also contains customary events of default including, among other things, payment defaults, breaches of covenants or
representations and warranties, cross-defaults with certain other indebtedness, bankruptcy and insolvency events and change in control of Fabrinet, subject to grace periods in certain instances. Upon an event of default, the lenders may terminate
their commitments, declare all or a portion of the outstanding obligations payable by Fabrinet to be immediately due and payable and exercise other rights and remedies provided for under the Facility Agreement.

Fabrinet intends to use the proceeds of the credit line to finance its future manufacturing buildings in the United States and Thailand, and
for general corporate purposes including mergers and acquisitions of complementary manufacturing businesses or technology, although Fabrinet has no current commitments with respect to any such acquisitions.

Short-term loans from bank

In connection with the business acquisition in the first quarter of fiscal year 2017, the Company assumed a secured borrowing agreement. In the
first quarter of fiscal year 2018, the Company fully repaid these short-term loans and sent a notification letter to the bank to terminate this secured borrowing agreement. As a result, the bank released secured trade accounts receivable and the way
chattels mortgage over the plant and machine of Fabrinet UK.

Undrawn available credit facilities classified by availability period of
future borrowing as of March 30, 2018 and June 30, 2017 were as follows:

(amount in thousands)

March 30,2018

June 30,2017

Short-term

$



$

1,965

Long-term

$

111,000

$

116,000

12.

Income taxes

As of March 30, 2018 and June 30, 2017, the liability for
uncertain tax positions including accrued interest and penalties was $2.2 million and $2.0 million, respectively. The Company expects the estimated amount of liability associated with its uncertain tax positions to decrease within the next
12 months due to the lapse of the applicable statute of limitations in foreign tax jurisdictions.

The Company files income tax
returns in the United States and foreign tax jurisdictions. The tax years from 2012 to 2016 remain open to examination by U.S. federal and state tax authorities, and foreign tax authorities. The Companys income tax is recognized based on the
best estimate of the expected annual effective tax rate for the full financial year of each entity in the Company, adjusted for discrete items arising in that quarter. If the Companys estimated annual effective tax rate changes, the Company
makes a cumulative adjustment in that quarter.

The effective tax rates for the Company for the three months ended March 30, 2018 and
March 31, 2017 were 6.2% and 6.5%, respectively, of net income. The decrease was primarily due to the fact that the Company had higher income not subject to tax during the three months ended March 30, 2018, compared with the three months
ended March 31, 2017.

The effective tax rates for the Company for the nine months ended March 30, 2018 and March 31, 2017
were 6.3% and 6.7%, respectively, of net income. The decrease was primarily due to the fact that the Company had higher income not subject to tax during the nine months ended March 30, 2018, compared with the nine months ended March 31,
2017.

On December 22, 2017, the Tax Cuts and Jobs Act (the TCJ Act) was enacted into
law. The TCJ Act provides for significant changes to the U.S. Internal Revenue Code of 1986, as amended (the Code), that impact corporate taxation requirements, such as the reduction of the federal tax rate for corporations from 35% to
21% and changes or limitations to certain tax deductions. The impact of the TCJ Act for the Company was a reduction of the value of deferred tax assets (which represent future tax benefits) of its U.S. subsidiaries as a result of lowering the U.S.
corporate income tax rate from 35% to 21%. This reduction of the value of deferred tax assets was fully offset by a reversal of the valuation allowance on the related deferred tax assets. Therefore, there is no impact to the unaudited condensed
consolidated financial statements.

13.

Share-based compensation

Share-based compensation

In determining the grant date fair value of equity awards, the Company is required to make estimates of expected dividends to be issued,
expected volatility of Fabrinets ordinary shares, expected forfeitures of the awards, risk free interest rates for the expected term of the awards and expected terms of the awards. Forfeitures are estimated at the time of grant and revised if
necessary in subsequent periods if actual forfeitures differ from those estimates. The fair value of restricted share units is based on the market value of our ordinary shares on the date of grant.

The effect of recording share-based compensation expense for the three and nine months ended March 30, 2018 and March 31, 2017 was as
follows:

Three Months Ended

Nine Months Ended

(amount in thousands)

March 30,2018

March 31,2017

March 30,2018

March 31,2017

Share-based compensation expense by type of award:

Restricted share units

$

3,904

$

6,540

$

13,338

$

18,993

Performance share units

1,422

1,188

4,366

2,943

Total share-based compensation expense

5,326

7,728

17,704

21,936

Tax effect on share-based compensation expense









Net effect on share-based compensation expense

$

5,326

$

7,728

$

17,704

$

21,936

Share-based compensation expense was recorded in the unaudited condensed consolidated statements of operations
and comprehensive income as follows:

Three Months ended

Nine Months Ended

(amount in thousands)

March 30,2018

March 31,2017

March 30,2018

March 31,2017

Cost of revenue

$

1,564

$

1,657

$

5,277

$

4,185

Selling, general and administrative expense

3,762

6,071

12,427

17,751

Total share-based compensation expense

$

5,326

$

7,728

$

17,704

$

21,936

The Company did not capitalize any share-based compensation expense as part of any asset costs during the
three and nine months ended March 30, 2018 and March 31, 2017.

On March 12, 2010, Fabrinets shareholders
adopted the 2010 Plan. On December 20, 2010, December 20, 2012 and December 14, 2017, Fabrinets shareholders adopted amendments to the 2010 Plan to increase the number of ordinary shares authorized for issuance under the 2010
Plan by 500,000 shares, 3,700,000 shares and 2,100,000 shares, respectively. As of March 30, 2018, there were an aggregate of 32,326 share options outstanding, 1,050,811 restricted share units outstanding and 508,586 performance share units
outstanding under the 2010 Plan. As of March 30, 2018, there were 2,504,131 ordinary shares available for future grant under the 2010 Plan.

On November 2, 2017, Fabrinet adopted the 2017 Inducement Plan with a reserve of 160,000
ordinary shares authorized for future issuance solely for the granting of inducement share options and equity awards to new employees. The 2017 Inducement Plan was adopted without shareholder approval in reliance on the employment inducement
exemption provided under the New York Stock Exchange Listed Company Manual. As of March 30, 2018, there were an aggregate of 48,653 restricted share units outstanding and 97,306 performance share units outstanding under the 2017
Inducement Plan. As of March 30, 2018, there were 14,041 ordinary shares available for future grant under the 2017 Inducement Plan.

Share options

Share
options have been granted to directors and employees. Fabrinets board of directors has the authority to determine the type of option and the number of shares subject to an option. Options generally vest and become exercisable over four years
and expire, if not exercised, within seven years of the grant date. In the case of a grantees first grant, 25 percent of the underlying shares vest 12 months after the vesting commencement date and 1/48 of the underlying shares vest
monthly over each of the subsequent 36 months. In the case of any additional grants to a grantee, 1/48 of the underlying shares vest monthly over four years, commencing one month after the vesting commencement date.

The following summarizes information for share options outstanding as of March 30, 2018
under the 2010 Plan:

Range of ExercisePrice

Number ofSharesUnderlyingOptions

Weighted-AverageRemainingContractualLife (years)

AggregateIntrinsic Value(amount in thousands)

$

14.12

21,638

0.61

$

15.16

5,138

0.38

$

18.60

5,550

0.92

Options outstanding

32,326

0.63

$

528

Options exercisable

32,326

0.63

$

528

As of March 30, 2018, there was no unrecognized compensation cost for share options issued under the 2010
Plan.

Restricted share units and performance share units

Restricted share units and performance share units have been granted under the 2010 Plan and the 2017 Inducement Plan.

Restricted share units granted to employees generally vest in equal installments over three or four years on each anniversary of the vesting
commencement date. Restricted share units granted to non-employee directors generally cliff vest 100% on the first of January, approximately one year from the grant date, provided the director continues to
serve through such date.

Performance share units granted to executives will vest, if at all, at the end of a two-year performance period based on the Companys achievement of pre-defined performance criteria, which consist of revenue and gross margin targets. The actual number
of performance share units that may vest at the end of the performance period ranges from 0% to 100% of the award grant.

The
following summarizes restricted share unit activity under the 2010 Plan and the 2017 Inducement Plan:

The following summarizes performance share unit activity under the 2010 Plan and the 2017 Inducement Plan:

NumberofShares

Weighted-Average GrantDate Fair ValuePer Share

Balance as of June 30, 2017

227,268

$

40.48

Granted

378,624

(1)

37.16

Issued





Forfeited





Balance as of March 30, 2018

605,892

$

38.41

NumberofShares

Weighted-Average GrantDate Fair ValuePer Share

Balance as of June 24, 2016





Granted

234,678

(1)

$

40.48

Issued





Forfeited





Balance as of March 31, 2017

234,678

$

40.48

(1)

This represents the target number of performance share units (PSUs) granted. The actual number of PSUs that may be earned, if any, is dependent upon performance and may range from 0% to 100% percent of the
target.

As of March 30, 2018, there was $15.9 million and $2.6 million of unrecognized share-based
compensation expense related to restricted share units and performance share units, respectively, under the 2010 Plan and the 2017 Inducement Plan that are expected to be recorded over a weighted-average period of 2.55 years and 1.03 years,
respectively.

For the nine months ended March 30, 2018 and March 31, 2017, the Company withheld an aggregate of 101,080 shares
and 33,276 shares, respectively, upon the vesting of restricted share units, based upon the closing share price on the vesting date to settle the employees minimum statutory obligation for the applicable income and other employment taxes. For
the nine months ended March 30, 2018 and March 31, 2017, the Company then remitted cash of $4.0 million and $1.3 million, respectively, to the appropriate taxing authorities, and presented it as a financing activity within the
unaudited condensed consolidated statements of cash flows. The payment had the effect on shares issued by the Company as it reduced the number of shares that would have been issued on the vesting date and was recorded as a reduction of additional paid-in capital.

For the nine months ended March 30, 2018, Fabrinet issued 62,862 ordinary shares upon
the exercise of options, for cash consideration at a weighted-average exercise price of $15.80 per share, and 236,857 ordinary shares upon the vesting of restricted share units, net of shares withheld.

In August 2017, the Companys board of directors approved a share repurchase program to permit the Company to repurchase up to
$30.0 million worth of its issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations. In February 2018, the Companys board of directors approved a $30.0 million increase to the
share repurchase authorization. During the three and nine months ended March 30, 2018, 422,452 and 738,425 shares, respectively, were repurchased under the program, at an average price per share of $29.58 and $30.34, respectively, totaling
$12.5 million and $22.4 million, respectively. As of March 30, 2018, the Company had a remaining authorization to purchase up to an additional $37.6 million worth of its ordinary shares under the share repurchase program.

15. Accumulated other comprehensive income

The changes in AOCI for the nine months ended March 30, 2018 were as follows:

(amount in thousands)

Unrealized netLossesonMarketableSecurities

UnrealizednetGains(Losses) onDerivativeInstruments

ForeignCurrencyTranslationAdjustment(Losses)Gains

Total

Balance as of June 30, 2017

$

(72

)

$

34

$

(310

)

$

(348

)

Other comprehensive (loss) income before reclassification adjustment

(361

)



1,358

997

Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed
consolidated statements of operations and comprehensive income

(687

)

(1

)



(688

)

Tax effects









Other comprehensive (loss) income

$

(1,048

)

$

(1

)

$

1,358

$

309

Balance as of March 30, 2018

$

(1,120

)

$

33

$

1,048

$

(39

)

The changes in AOCI for the nine months ended March 31, 2017 were as follows:

(amount in thousands)

Unrealized net(Losses) GainsonMarketableSecurities

Unrealized netGains(Losses) onDerivativeInstruments

ForeignCurrencyTranslationAdjustment(Losses)Gains

Total

Balance as of June 24, 2016

$

399

$

192

$



$

591

Other comprehensive income (loss) before reclassification adjustment

75



(935

)

(860

)

Amounts reclassified out of AOCI to foreign exchange loss, net in the unaudited condensed
consolidated statements of operations and comprehensive income

(566

)

(158

)



(724

)

Tax effects









Other comprehensive loss

$

(491

)

$

(158

)

$

(935

)

$

(1,584

)

Balance as of March 31, 2017

$

(92

)

$

34

$

(935

)

$

(993

)

16.

Commitments and contingencies

Bank guarantees

As of March 30, 2018 and June 30, 2017, there were outstanding bank guarantees given by banks on behalf of Fabrinet Thailand for
electricity usage and other normal business amounting to Thai baht 50.1 million as of both dates ($1.6 million and $1.5 million, respectively).

The Company leases a portion of its office, capital equipment, and certain land and buildings for its facilities in the Cayman Islands, China,
New Jersey and the United Kingdom under operating lease arrangements that expire in various calendar years through 2023. Rental expense under these operating leases amounted to $1.3 million and $1.2 million for the nine months ended
March 30, 2018 and March 31, 2017, respectively.

As of March 30, 2018, the future minimum lease payments due under non-cancelable operating leases during each fiscal year were as follows:

(amount in thousands)

2018 (remaining three months)

$

468

2019

1,319

2020

965

2021

562

2022

448

Thereafter

486

Total minimum operating lease payments

$

4,248

Capital lease commitments

In connection with the acquisition of Fabrinet UK, the Company assumed the capital lease commitments of certain machines and equipment, with
various expiration dates until September 2020. The equipment can be purchased at the determined prices upon expiration of such contracts.

As of March 30, 2018, the future minimum lease payments due under non-cancelable capital leases
during each fiscal year were as follows:

(amount in thousands)

2018 (remaining three months)

$

125

2019

484

2020

440

2021

113

Total minimum capital lease payments

$

1,162

Purchase obligations

Purchase obligations represent legally-binding commitments to purchase inventory and other commitments made in the normal course of business to
meet operational requirements. Although open purchase orders are considered enforceable and legally binding, their terms generally give the Company the option to cancel, reschedule and/or adjust its requirements based on its business needs prior to
the delivery of goods or performance of services. Obligations to purchase inventory and other commitments are generally expected to be fulfilled within one year.

On December 23, 2016, the Company entered into an agreement to purchase a parcel of land in Chonburi, Thailand, to support the expansion
of the Companys production in Thailand. The aggregate purchase price is approximately $5.6 million, of which the first installment of $1.1 million was paid by the Company on January 10, 2017 and the remaining balance of the
purchase price was paid by the Company on December 25, 2017.

As of March 30, 2018, the Company had an outstanding commitment to
third parties of approximately $3.5 million.

Indemnification of directors and officers

Cayman Islands law does not limit the extent to which a companys memorandum and articles of association may provide for indemnification
of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime.
Fabrinets amended and restated memorandum and articles of association provide for indemnification of directors and officers for actions, costs, charges, losses, damages and expenses incurred in their capacities as such, except that such
indemnification does not extend to any matter in respect of any fraud or dishonesty that may attach to any of them.

In accordance with Fabrinets form of indemnification agreement for its directors and
officers, Fabrinet has agreed to indemnify its directors and officers against certain liabilities and expenses incurred by such persons in connection with claims by reason of their being such a director or officer. Fabrinet maintains a director and
officer liability insurance policy that may enable it to recover a portion of any future amounts paid under the indemnification agreements.

17.

Business segments and geographic information

Operating segments are defined as
components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Companys chief
operating decision maker is Fabrinets chief executive officer. As of March 30, 2018, the Company operated and internally managed a single operating segment. Accordingly, the Company does not accumulate discrete information with respect to
separate product lines and does not have separate reportable segments.

Total revenues are attributed to a particular geographic area based
on the bill-to-location of the customers. The Company operates primarily in three geographic regions: North America, Asia-Pacific and Europe. The following table
presents total revenues by geographic regions:

Three Months Ended

Nine Months Ended

(amount in thousands)

March 30,2018

March 31,2017

March 30,2018

March 31,2017

North America

$

160,926

$

154,708

$

470,084

$

478,700

Asia-Pacific

122,631

149,271

395,848

400,708

Europe

48,656

62,858

160,666

170,628

$

332,213

$

366,837

$

1,026,598

$

1,050,036

As of March 30, 2018 and March 31, 2017, the Company had approximately $33.7 million and
$35.3 million of long-lived assets based in North America, with the substantial remainder of assets based in Asia-Pacific and Europe.

Significant customers

The Company had three customers that each contributed to 10% or more of its total trade accounts receivable as of March 30, 2018 and June
30, 2017.

18.

Expenses related to reduction in workforce

As part of the Companys ongoing
efforts to achieve greater efficiencies in all areas of its business, during the nine months ended March 30, 2018, the Company implemented a reduction in workforce and incurred expenses of approximately $1.7 million, which represented
severance and benefits costs incurred for the termination of approximately 204 employees in accordance with contractual obligations and local regulations.

ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

In addition to historical information, this Quarterly Report on Form
10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements relate to future
events or to our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our or our industrys actual results, levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, but are not limited to, statements about:

our expectation that the portion of our future revenues attributable to customers in regions outside of North America will increase compared with the portion of those revenues attributable to such customers for the nine
months ended March 30, 2018;



our expectation that we will incur incremental costs of revenue as a result of our planned expansion of our business into new geographic markets;



our expectation that our fiscal year 2018 selling, general and administrative (SG&A) expenses will decrease compared to fiscal year 2017;



our expectation that our employee costs will increase in Thailand and the Peoples Republic of China (PRC);

These forward-looking statements are subject to certain risks and uncertainties that could cause our actual
results to differ materially from those reflected in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this Quarterly Report on Form 10-Q, in particular, the risks discussed under the heading Risk Factors in Part II, Item 1A as well as those discussed in other documents we file with the Securities and Exchange Commission. We
undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.
We, us or our collectively refer to Fabrinet and its subsidiaries.

Overview

We provide advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment
manufacturers (OEMs) of complex products such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. We offer a broad range of advanced
optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final
assembly and test. Although we focus primarily on low-volume production of a wide variety of high complexity products, which we refer to as low-volume,high-mix, we also have the capability to accommodate high-volume production. Based on our experience with, and positive feedback we have received from our customers, we believe we are a global leader in
providing these services to the optical communications, industrial lasers and automotive markets.

Our customer base includes companies in
complex industries that require advanced precision manufacturing capabilities such as optical communications, industrial lasers, automotive and sensors. The products that we manufacture for our OEM customers include selective switching products;
tunable transponders and transceivers; active optical cables; solid state, diode-pumped, gas and fiber lasers; and sensors. In many cases, we are the sole outsourced manufacturing partner used by our customers for the products that we produce for
them.

We also design and fabricate application-specific crystals, lenses, prisms, mirrors, laser components, and substrates (collectively
referred to as customized optics) and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products (collectively referred to as customized glass). We incorporate our customized optics
and glass into many of the products we manufacture for our OEM customers, and we also sell customized optics and glass in the merchant market.

Revenues

We believe our ability to
expand our relationships with existing customers and attract new customers is due to a number of factors, including our broad range of complex engineering and manufacturing service offerings, flexible low-cost
manufacturing platform, process optimization capabilities, advanced supply chain management, excellent customer service, and experienced management team. While we expect the prices we charge for our manufactured products to decrease over time
(partly as a result of competitive market forces), we still believe we will be able to maintain favorable pricing for our services because of our ability to reduce cycle time, adjust our product mix by focusing on more complicated products, improve
product quality and yields, and reduce material costs for the products we manufacture. We believe these capabilities have enabled us to help our OEM customers reduce their manufacturing costs while maintaining or improving the design, quality,
reliability, and delivery times for their products.

Revenues by Geography

We generate revenues from three geographic regions: North America, Asia-Pacific and Europe. Revenues are attributed to a particular geographic
area based on the bill-to location of our customers, notwithstanding that our customers may ultimately ship their products to end customers in a different geographic region. The majority of our revenues are
derived from our manufacturing facilities in Asia-Pacific.

The percentage of our revenues generated from a
bill-to location outside of North America decreased from 57.8% in the three months ended March 31, 2017 to 51.6% in the three months ended March 30, 2018, and decreased from 54.4% in the nine months
ended March 31, 2017 to 54.2% in the nine months ended March 30, 2018, primarily because of a decrease in sales to our customers in Asia-Pacific. We expect that the portion of our future revenues attributable to customers in regions
outside North America will increase as compared with the portion of revenues attributable to such customers during the nine months ended March 30, 2018.

The following table presents percentages of total revenues by geographic regions:

Three Months Ended

Nine Months Ended

March 30,2018

March 31,2017

March 30,2018

March 31,2017

North America

48.4

%

42.2

%

45.8

%

45.6

%

Asia-Pacific

36.9

40.7

38.5

38.1

Europe

14.7

17.1

15.7

16.3

100.0

%

100.0

%

100.0

%

100.0

%

Our Contracts

We enter into supply agreements with our customers which generally have an initial term of up to three years, subject to automatic renewals for
subsequent one-year terms unless expressly terminated. Although there are no minimum purchase requirements in our supply agreements, our customers provide us with rolling forecasts of their demand
requirements. Our supply agreements generally include provisions for pricing and periodic review of pricing, consignment of our customers unique production equipment to us, and the sharing of benefits from cost-savings derived from our
efforts. We are generally required to purchase materials, which may include long lead-time materials and materials that are subject to minimum order quantities and/or non-cancelable or non-returnable terms, to meet the stated demands of our customers. After procuring materials, we manufacture products for our customers based on purchase orders that contain terms regarding product quantities,
delivery locations and delivery dates. Our customers generally are obligated to purchase finished goods that we have manufactured according to their demand requirements. Materials that are not consumed by our customers within a specified period of
time, or are no longer required due to a products cancellation or end-of-life, are typically designated as excess or obsolete inventory under our contracts. Once
materials are designated as either excess or obsolete inventory, our customers are typically required to purchase such inventory from us even if they have chosen to cancel production of the related products.

Cost of Revenues

The key components of
our cost of revenues are material costs, employee costs, and infrastructure-related costs. Material costs generally represent the majority of our cost of revenues. Several of the materials we require to manufacture products for our customers are
customized for their products and often sourced from a single supplier or in some cases, our own subsidiaries. Shortages from sole-source suppliers due to yield loss, quality concerns and capacity constraints, among other factors, may increase our
expenses and negatively impact our gross profit margin or total revenues in a given quarter. Material costs include scrap material. Historically, scrap rate diminishes during a products life cycle due to process, fixturing and test improvement
and optimization.

A second significant element of our cost of revenues is employee costs, including indirect employee costs related to
design, configuration and optimization of manufacturing processes for our customers, quality testing, materials testing and other engineering services; and direct costs related to our manufacturing employees. Direct employee costs include employee
salaries, insurance and benefits, merit-based bonuses, recruitment, training and retention. Historically, our employee costs have increased primarily due to increases in the number of employees necessary to support our growth and, to a lesser
extent, costs to recruit, train and retain employees. Our cost of revenues is significantly impacted by salary levels in Thailand, the PRC and the United Kingdom, the fluctuation of the Thai baht, Chinese Renminbi (RMB) and
Pound Sterling (GBP) against our functional currency, the U.S. dollar, and our ability to retain our employees. We expect our employee costs to increase as wages continue to increase in Thailand and the PRC. Wage increases may
impact our ability to sustain our competitive advantage and may reduce our profit margin. We seek to mitigate these cost increases through improvements in employee productivity, employee retention and asset utilization.

Our infrastructure costs are comprised of depreciation, utilities, facilities management and overhead costs. Most of our facility leases are
long-term agreements. Our depreciation costs include buildings and fixed assets, primarily at our Pinehurst and Chonburi campuses in Thailand, and capital equipment located at each of our manufacturing locations.

We expect to incur incremental costs of revenue as a result of our planned expansion into new geographic markets, though we are not able to
determine the amount of these incremental expenses.

Our SG&A expenses primarily consist of corporate employee costs for sales and marketing, general and administrative and other support
personnel, including research and development expenses related to the design of customized optics and glass, travel expenses, legal and other professional fees, share-based compensation expense and other general expenses not related to cost of
revenues. In fiscal year 2018, we expect our SG&A expenses will decrease compared with fiscal year 2017, primarily due to lower share-based compensation expenses granted to executives and adjustments of executive bonus.

The compensation committee of our board of directors approved a fiscal year 2018 executive incentive plan with quantitative objectives that
are based solely on achieving certain revenue and non-GAAP gross margin targets for our fiscal year ending June 29, 2018. Bonuses under our fiscal year 2018 executive incentive plan are payable after the end
of fiscal year 2018. In fiscal year 2017, the compensation committee approved a fiscal year 2017 executive incentive plan with quantitative objectives that were based solely on achieving certain revenue and
non-GAAP gross margin targets for our fiscal year ended June 30, 2017. In the three months ended September 29, 2017, the compensation committee awarded bonuses to our executive employees for Company
achievements of performance under our fiscal 2017 executive incentive plan. Discretionary merit-based bonus awards are also available to our non-executive employees and payable on a quarterly basis.

Additional Financial Disclosures

Foreign Exchange

As a result of our international operations, we are exposed to foreign exchange risk arising from various currency exposures
primarily with respect to the Thai baht. Although a majority of our total revenues is denominated in U.S. dollars, a substantial portion of our payroll plus certain other operating expenses are incurred and paid in Thai baht. The exchange rate
between the Thai baht and the U.S. dollar has fluctuated substantially in recent years and may continue to fluctuate substantially in the future. We report our financial results in U.S. dollars and our results of operations have been and could in
the future be negatively impacted if the Thai baht appreciates against the U.S. dollar. Smaller portions of our expenses are incurred in a variety of other currencies, including RMB, GBP, Canadian dollars, Euros, and Japanese yen, the appreciation
of which may also negatively impact our financial results.

In order to manage the risks arising from fluctuations in foreign currency
exchange rates, we use derivative instruments. We may enter into exchange currency forward or put option contracts to manage foreign currency exposures associated with certain assets and liabilities and other forecasted foreign currency transactions
and may designate these instruments as hedging instruments. The forward and put option contracts generally have maturities of up to 12 months. All foreign currency exchange contracts are recognized in the unaudited condensed consolidated balance
sheet at fair value. Gain or loss on our forward and put option contracts generally offset the assets, liabilities, and transactions economically hedged.

We had foreign currency denominated assets and liabilities in Thai baht, RMB and GBP as follows:

As of March 30, 2018

As of June 30, 2017

(amount in thousands, except percentages)

Currency

$

%

Currency

$

%

Assets

Thai baht

541,505

$

17,339

60.5

395,123

$

11,628

47.3

RMB

12,383

1,969

6.9

26,965

3,980

16.2

GBP

6,621

9,353

32.6

6,896

8,982

36.5

Total

$

28,661

100.0

$

24,590

100.0

Liabilities

Thai baht

1,077,348

$

34,497

72.4

1,875,338

$

55,189

82.7

RMB

28,259

4,494

9.4

28,451

4,200

6.3

GBP

6,136

8,668

18.2

5,625

7,326

11.0

Total

$

47,659

100.0

$

66,715

100.0

The Thai baht assets represent cash and cash equivalents, trade accounts receivable, deposits and other
current assets. The Thai baht liabilities represent trade accounts payable, accrued expenses, income tax payable and other payables. We manage our exposure to fluctuations in foreign exchange rates by the use of foreign currency contracts and
offsetting assets and liabilities denominated in the same currency in accordance with our risk management policy. As of March 30, 2018 and June 30, 2017, there were $14.0 million and $1.0 million in forward contracts,
respectively, outstanding against forecasted Thai baht payables.

The RMB assets represent cash and cash equivalents, trade accounts receivable and other current
assets. The RMB liabilities represent trade accounts payable, accrued expenses, income tax payable and other payables. As of March 30, 2018 and June 30, 2017, we did not have any derivative contracts denominated in RMB.

The GBP assets represent cash, trade accounts receivable and other current assets. The GBP liabilities represent trade accounts payable and
other payables. As of March 30, 2018 and June 30, 2017, we did not have any derivative contracts denominated in GBP.

For the
nine months ended March 30, 2018 and March 31, 2017, we recorded loss of $0.8 million and $8.0 thousand, respectively, related to derivatives that are not designated as hedging instruments in the unaudited condensed consolidated
statements of operations and comprehensive income.

Currency Regulation and Dividend Distribution

Foreign exchange regulation in the PRC is primarily governed by the following rules:



Foreign Currency Administration Rules, as amended on August 5, 2008, or the Exchange Rules;



Administration Rules of the Settlement, Sale and Payment of Foreign Exchange (1996), or the Administration Rules; and



Notice on Perfecting Practices Concerning Foreign Exchange Settlement Regarding the Capital Contribution by Foreign-invested Enterprises, as promulgated by the State Administration of Foreign Exchange
(SAFE), on August 29, 2008, or Circular 142.

Under the Exchange Rules, RMB is freely convertible into
foreign currencies for current account items, including the distribution of dividends, interest payments, trade and service-related foreign exchange transactions. However, conversion of RMB for capital account items, such as direct investments,
loans, security investments and repatriation of investments, is still subject to the approval of SAFE.

Under the Administration Rules,
foreign-invested enterprises may only buy, sell, or remit foreign currencies at banks authorized to conduct foreign exchange business after providing valid commercial documents and relevant supporting documents and, in the case of capital account
item transactions, obtaining approval from SAFE. Capital investments by foreign-invested enterprises outside of the PRC are also subject to limitations, which include approvals by the Ministry of Commerce, SAFE and the State Development and Reform
Commission.

Circular 142 regulates the conversion by a foreign-invested company of foreign currency into RMB by restricting how the
converted RMB may be used. Circular 142 requires that the registered capital of a foreign-invested enterprise settled in RMB converted from foreign currencies may only be used for purposes within the business scope approved by the applicable
governmental authority and may not be used for equity investments within the PRC. In addition, SAFE strengthened its oversight of the flow and use of the registered capital of foreign-invested enterprises settled in RMB converted from foreign
currencies. The use of such RMB capital may not be changed without SAFEs approval and may not be used to repay RMB loans if the proceeds of such loans have not been used.

On January 5, 2007, SAFE promulgated the Detailed Rules for Implementing the Measures for the Administration on Individual Foreign
Exchange, or the Implementation Rules. Under the Implementation Rules, PRC citizens who are granted share options by an overseas publicly-listed company are required, through a PRC agent or PRC subsidiary of such overseas publicly-listed company, to
register with SAFE and complete certain other procedures.

In addition, the General Administration of Taxation has issued circulars
concerning employee share options. Under these circulars, our employees working in the PRC who exercise share options will be subject to PRC individual income tax. Our PRC subsidiary has obligations to file documents related to employee share
options with relevant tax authorities and withhold individual income taxes of those employees who exercise their share options.

Furthermore, our transfer of funds to our subsidiaries in Thailand and the PRC are each subject to approval by governmental authorities in
case of an increase in registered capital, or subject to registration with governmental authorities in case of a shareholder loan. These limitations on the flow of funds between our subsidiaries and us could restrict our ability to act in response
to changing market conditions.

Our effective tax rate is a function of the mix of tax rates in the various jurisdictions in which we do business. We are domiciled in the
Cayman Islands. Under the current laws of the Cayman Islands, we are not subject to tax in the Cayman Islands on income or capital gains. We have received this undertaking for a 20-year period ending
August 24, 2019. As that date approaches, we intend to request a renewal with the office of the Clerk of the Cabinet for another 20 years.

Throughout the period of our operations in Thailand, we have generally received income tax and other incentives from the Thailand Board of
Investment. Preferential tax treatment from the Thai government in the form of a corporate tax exemption is currently available to us through June 2020 and June 2026 on income generated from projects to manufacture certain products at our Pinehurst
campus and Chonburi campus, respectively. Such preferential tax treatment is contingent on various factors, including the export of our customers products out of Thailand and our agreement not to move our manufacturing facilities out of our
current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted. In March 2016, the Thailand Revenue Department announced a permanent decrease of corporate income tax rates to 20% for tax periods
beginning on or after January 1, 2016. As a result, corporate income tax rates for our Thai subsidiary remain at 20% from fiscal year 2017 onward.

On December 22, 2017, the Tax Cuts and Jobs Act (the TCJ Act) was enacted into law. The TCJ Act provides for significant
changes to the U.S. Internal Revenue Code of 1986, as amended (the Code), that impact corporate taxation requirements, such as the reduction of the federal tax rate for corporations from 35% to 21% and changes or limitations to certain
tax deductions. While we are able to make reasonable estimates of the impact of the reduction in corporate rate, the final impact of the TCJ Act may differ from these estimates, due to, among other things, changes in our interpretations and
assumptions, additional guidance that may be issued by the I.R.S., and actions we may take.

Critical Accounting Policies and Use of Estimates

We prepare our unaudited condensed consolidated financial statements in conformity with U.S. GAAP, which requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities on the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the
financial reporting period. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and on various other assumptions that we believe to be reasonable under the
circumstances, the results form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Because the use of estimates is an integral component of the financial reporting
process, actual results could differ from those estimates. Some of our accounting policies require higher degrees of judgment than others in their application. We consider the policies discussed below to be critical to an understanding of our
unaudited condensed consolidated financial statements, as their application places the most significant demands on our managements judgment.

Our critical accounting policies are disclosed in our Annual Report on Form 10-K for the fiscal year
ended June 30, 2017. The adoption of new accounting policies and the accounting standards are disclosed in Note 2  Accounting policies to the unaudited condensed consolidated financial statements.

The following table sets forth a summary of our unaudited condensed consolidated statements of operations and comprehensive income. Note that period-to-period comparisons of operating results should not be relied upon as indicative of future performance. The three months ended March 30, 2018 and March 31,
2017 each consisted of 13 weeks. The nine months ended March 30, 2018 and March 31, 2017 consisted of 39 weeks and 40 weeks, respectively.

Three Months Ended

Nine Months Ended

(amount in thousands)

March 30,2018

March 31,2017

March 30,2018

March 31,2017

Revenues

$

332,213

$

366,837

$

1,026,598

$

1,050,036

Cost of revenues

(295,280

)

(322,791

)

(912,167

)

(923,336

)

Gross profit

36,933

44,046

114,431

126,700

Selling, general and administrative expenses

(12,418

)

(17,086

)

(41,253

)

(50,569

)

Expenses related to reduction in workforce





(1,776

)



Operating income

24,515

26,960

71,402

76,131

Interest income

1,149

713

2,554

1,470

Interest expense

(820

)

(641

)

(2,499

)

(2,517

)

Foreign exchange loss, net

(2,428

)

(3,702

)

(5,710

)

(100

)

Other income

91

108

438

397

Income before income taxes

22,507

23,438

66,185

75,381

Income tax expense

(1,454

)

(1,782

)

(4,786

)

(5,667

)

Net income

21,053

21,656

61,399

69,714

Other comprehensive income (loss), net of tax

173

276

309

(1,584

)

Net comprehensive income

$

21,226

$

21,932

$

61,708

$

68,130

The following table sets forth a summary of our unaudited condensed consolidated statements of operations and comprehensive
income as a percentage of total revenues for the periods indicated.

The following table sets forth our revenues by end market for the periods indicated.

Three Months Ended

Nine Months Ended

(amount in thousands)

March 30, 2018

March 31, 2017

March 30, 2018

March 31, 2017

Optical communications

$

240,798

$

286,870

$

758,299

$

817,922

Lasers, sensors and other

91,415

79,967

268,299

232,114

Total

$

332,213

$

366,837

$

1,026,598

$

1,050,036

We operate and internally manage a single operating segment. As such, discrete information with respect to
separate product lines and segments is not accumulated.

Comparison of Three and Nine Months Ended March 30, 2018 with Three and Nine Months
Ended March 31, 2017

Total revenues.

Our total revenues decreased by $34.6 million, or 9.4%, to $332.2 million for the three months ended March 30, 2018, compared
with $366.8 million for the three months ended March 31, 2017. This decrease was primarily due to a decrease in our customers demand for optical communications manufacturing services partially offset by an increase in our
customers demand for non-optical communications manufacturing services. Revenues from optical communications manufacturing services represented 72.5% of our total revenues for the three months ended
March 30, 2018, compared to 78.2% for the three months ended March 31, 2017.

Our total revenues decreased by
$23.4 million, or 2.2%, to $1,026.6 million for the nine months ended March 30, 2018, compared with $1,050.0 million for the nine months ended March 31, 2017. This decrease was primarily due to a decrease in our
customers demand for optical communications manufacturing services partially offset by an increase in our customers demand for non-optical communications manufacturing services. In addition, the
nine months ended March 30, 2018 was one week shorter than the nine months ended March 31, 2017. Revenues from optical communications manufacturing services represented 73.9% of our total revenues for the nine months ended March 30,
2018, compared to 77.9% for the nine months ended March 31, 2017.

Cost of revenues.

Our cost of revenues decreased by $27.5 million, or 8.5%, to $295.3 million, or 88.9% of total revenues, for the three months ended
March 30, 2018, compared with $322.8 million, or 88.0% of total revenues, for the three months ended March 31, 2017. The decrease in cost of revenues on an absolute dollar basis was primarily due to a decrease in sales volume. Cost of
revenues also included share-based compensation expenses of $1.6 million for the three months ended March 30, 2018, compared with $1.7 million for the three months ended March 31, 2017.

Our cost of revenues decreased by $11.2 million, or 1.2%, to $912.2 million, or 88.9% of total revenues, for the nine months ended
March 30, 2018, compared with $923.3 million, or 87.9% of total revenues, for the nine months ended March 31, 2017. The decrease in cost of revenues was primarily due to a decrease in sales volume. Cost of revenues also included
share-based compensation expenses of $5.3 million for the nine months ended March 30, 2018,compared with $4.2 million for the nine months ended March 31, 2017.

Gross profit.

Our gross
profit decreased by $7.1 million, or 16.1%, to $36.9 million, or 11.1% of total revenues, for the three months ended March 30, 2018, compared with $44.0 million, or 12.0% of total revenues, for the three months ended
March 31, 2017.

Our gross profit decreased by $12.3 million, or 9.7%, to $114.4 million, or 11.1% of total revenues, for
the nine months ended March 30, 2018, compared with $126.7 million, or 12.1% of total revenues, for the nine months ended March 31, 2017.

Our SG&A expenses decreased by $4.7 million, or 27.3%, to $12.4 million, or 3.7% of total revenues, for the three months ended
March 30, 2018, compared with $17.1 million, or 4.6% of total revenues, for the three months ended March 31, 2017. Our SG&A expenses decreased primarily due to lower incentive-based compensation.

Our SG&A expenses decreased by $9.3 million, or 18.4%, to $41.2 million, or 4.0% of total revenues, for the nine months ended
March 30, 2018, compared with $50.6 million, or 4.8% of total revenues, for the nine months ended March 31, 2017. Our SG&A expenses decreased primarily due to lower expenses relating to merger and acquisition activities of
$1.6 million, and lower incentive-based compensation.

Operating income.

Our operating income decreased by $2.4 million to $24.5 million, or 7.4% of total revenues, for the three months ended March 30,
2018, compared with $27.0 million, or 7.4% of total revenues, for the three months ended March 31, 2017. The decrease was primarily due to lower gross profit of $7.1 million, offset by a decrease in SG&A expenses of
$4.7 million.

Our operating income decreased by $4.7 million to $71.4 million, or 6.9% of total revenues, for the nine
months ended March 30, 2018, compared with $76.1 million, or 7.3% of total revenues, for the nine months ended March 31, 2017. The decrease was primarily due to lower gross profit of $12.3 million, offset by a decrease in
SG&A expenses of $9.3 million.

Interest income.

Our interest income increased by $0.4 million to $1.1 million, or 0.3% of total revenues, for the three months ended March 30,
2018, compared with $0.7 million, or 0.2% of total revenues, for the three months ended March 31, 2017. Our interest income increased by $1.1 million to $2.6 million, or 0.2% of total revenues, for the nine months ended
March 30, 2018, compared with $1.5 million, or 0.1% of total revenues, for the nine months ended March 31, 2017. The increase was primarily due to a higher weighted average interest rate and an increase in the average balance of our
outstanding cash during the three months ended March 30, 2018.

Interest expense.

Our interest expense increased by $0.2 million to $0.8 million for the three months ended March 30, 2018, compared with
$0.6 million for the three months ended March 31, 2017. The increase was primarily due to a higher weighted average interest rate during the three months ended March 30, 2018.

Our interest expense remained flat at $2.5 million for the nine months ended March 30, 2018 and March 31, 2017.

Foreign exchange loss, net.

Our foreign exchange loss, net, decreased by $1.3 million to foreign exchange loss, net, of $2.4 million, or 0.7% of total revenues,
for the three months ended March 30, 2018, compared with foreign exchange loss, net, of $3.7 million, or 1.0% of total revenues, for the three months ended March 31, 2017. The decrease was primarily due to the decrease of liabilities
in foreign currencies as of March 31, 2018.

Our foreign exchange loss, net, increased by $5.6 million to foreign exchange loss,
net, of $5.7 million, or 0.6% of total revenues, for the nine months ended March 30, 2018, compared with foreign exchange loss, net, of $0.1 million, or 0.0% of total revenues, for the nine months ended March 31, 2017. The
increase was primarily due to the fluctuation of foreign currencies, particularly the depreciation of U.S. dollars against Thai baht.

Income before income taxes.

We recorded income before income taxes of $22.5 million and $66.2 million for the three and nine months ended March 30, 2018,
respectively, compared with $23.4 million and $75.4 million for the three and nine months ended March 31, 2017, respectively.

Income tax expense.

Our
provision for income tax reflects an effective tax rate of 6.2% for the three months ended March 30, 2018, compared with an effective tax rate of 6.5% for the three months ended March 31, 2017. The decrease was primarily due to the fact
that we had higher income not subject to tax during the three months ended March 30, 2018 as compared to the same period in fiscal year 2017.

Our provision for income tax reflects an effective tax rate of 6.3% for the nine months ended
March 30, 2018, compared with an effective tax rate of 6.7% for the nine months ended March 31, 2017. The decrease was primarily due to the fact that we had higher income not subject to tax during the nine months ended March 30, 2018
as compared to the same period in fiscal year 2017.

Net income.

We recorded net income of $21.1 million, or 6.4% of total revenues, for the three months ended March 30, 2018, compared with
$21.7 million, or 5.9% of total revenues, for the three months ended March 31, 2017. The decrease in net income of $0.6 million was primarily due to lower gross profit of $7.1 million, offset by decreases in SG&A expenses of
$4.7 million and foreign exchange loss, net, of $1.3 million.

We recorded net income of $61.4 million, or 5.8% of total
revenues, for the nine months ended March 30, 2018, compared with $69.7 million, or 6.6% of total revenues, for the nine months ended March 31, 2017. The decrease in net income of $8.3 million was primarily due to lower gross
profit of $12.3 million and an increase in foreign exchange loss, net, of $5.6 million. These were partially offset by a decrease in SG&A expenses of $9.3 million.

Other comprehensive income (loss).

We recorded other comprehensive income (loss) of $0.2 million, or 0.1% of total revenues, for the three months ended March 30, 2018,
compared with other comprehensive income (loss) of $0.3 million, or 0.1% of total revenues, for the three months ended March 31, 2017. The decrease was primarily due to an increase in unrealized loss from fair value adjustments of
marketable securities of $0.6 million.

We recorded other comprehensive income (loss) of $0.3 million, or 0.0% of total
revenues, for the nine months ended March 30, 2018, compared with other comprehensive (loss) of $(1.6) million, or 0.1% of total revenues, for the nine months ended March 31, 2017. The increase was primarily due to the foreign currency
translation adjustment from loss of $0.9 million for the nine months ended March 31, 2017 to gain of $1.4 million for the nine months ended March 30, 2018.

Liquidity and Capital Resources

Cash Flows and
Working Capital

We primarily finance our operations through cash flow from operations. As of March 30, 2018 and
March 31, 2017, we had cash, cash equivalents, and marketable securities of $311.9 million and $289.2 million, respectively, and outstanding debt of $65.2 million and $74.7 million, respectively.

Our cash and cash equivalents, which primarily consist of cash on hand, demand deposits, and liquid investments with original maturities of
three months or less, are placed with banks and other financial institutions. The weighted-average interest rate on our cash and cash equivalents for the three and nine months ended March 30, 2018 was 1.2% and 1.1%, respectively, and for the
three and nine months ended March 31, 2017 was 0.6% and 0.5%, respectively.

Our cash investments are made in accordance with an
investment policy approved by the Audit Committee of our board of directors. In general, our investment policy requires that securities purchased be rated A1, P-1, F1 or better. No security may have an
effective maturity that exceeds three years. Our investments in fixed income securities are primarily classified as available-for-sale and are recorded at fair value.
The cost of securities sold is based on the specific identification method. Unrealized gains and losses on these securities are recorded as other comprehensive income (loss) and are reported as a separate component of shareholders equity.

During the nine months ended March 30, 2018, we repaid a term loan of $10.2 million under our Facility Agreement; as a result, as of
March 30, 2018, we had a long-term borrowing of $26.2 million and short-term borrowing of $39.0 million under our Facility Agreement. We anticipate that our internally generated working capital, along with our cash and cash
equivalents will be adequate to repay these obligations. To better manage our cash on hand, we held investments in short-term marketable securities of $169.4 million as of March 30, 2018.

We believe that our current cash and cash equivalents, marketable securities, cash flow from operations, and funds available through our
credit facility will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months. Our ability to sustain our working capital position is subject to a number of risks that we discuss in Part II,
Item 1A of this Quarterly Report on Form 10-Q.

We also believe that our current manufacturing capacity is sufficient to meet our anticipated
production requirements for at least the next few quarters.

The following table shows our cash flows for the periods indicated:

Nine Months Ended

(amount in thousands)

March 30,2018

March 31,2017

Net cash provided by operating activities

$

89,794

$

60,388

Net cash used in investing activities

$

(48,926

)

$

(81,055

)

Net cash (used in) provided by financing activities

$

(31,940

)

$

17,401

Net increase (decrease) in cash, cash equivalents and restricted cash

$

8,928

$

(3,266

)

Operating Activities

Net cash provided by operating activities increased by $29.4 million, or 48.7%, to $89.8 million for the nine months ended
March 30, 2018, compared with net cash provided by operating activities of $60.4 million for the nine months ended March 31, 2017. This increase was primarily due to net cash inflow from trade accounts receivable of $72.3 million
and inventory of $38.8 million, partially offset by a decrease in net income of $8.3 million, net cash outflow from trade accounts payable of $55.2 million and a decrease in other current and
non-current assets of $13.8 million compared with the nine months ended March 31, 2017.

Investing Activities

Net
cash used in investing activities decreased by $32.1 million, or 39.6%, to $48.9 million for the nine months ended March 30, 2018, compared with net cash used in investing activities of $81.1 million for the nine months ended
March 31, 2017. This decrease was primarily due to (1) a decrease in the purchase of marketable securities of $16.2 million, (2) a decrease in the purchase of property, plant and equipment of $29.0 million, and (3) a
decrease of $9.9 million in payments in connection with the acquisition of Fabrinet UK, offset by a decrease in proceeds from sales and maturities of marketable securities of $23.4 million, compared with the nine months ended
March 31, 2017.

Financing Activities

Net cash for financing activities decreased by $49.3 million, or 283.6%, to net cash used in financing activities of $31.9 million
for the nine months ended March 30, 2018, compared with net cash provided by financing activities of $17.4 million for the nine months ended March 31, 2017. This decrease was primarily due to (1) an increase of $22.4 million
in the repurchase of ordinary shares pursuant to our share repurchase program, (2) a decrease in the proceeds from our revolving bank loan of $22.7 million, (3) a decrease in the proceeds from the issuance of ordinary shares under
employee share option plans of $4.9 million, and (4) an increase in withholding tax payment related to net share settlement of restricted share units of $2.8 million, compared with the same period last year. These were offset by a
decrease in the repayment of long-term loans from bank of $4.5 million.

Off-Balance Sheet Commitments and
Arrangements

We have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third
parties. In addition, we have not entered into any derivative contracts that are not reflected in our unaudited condensed consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an
unconsolidated entity that serves as credit, liquidity or market risk support to such entity. We also do not have any variable interest in any unconsolidated entity that provides financing, liquidity, market risk or credit support to us or engages
in leasing, hedging or research and development services with us.

Recent Accounting Pronouncements

See Note 2 of Notes to Unaudited Condensed Consolidated Financial Statements for recent accounting pronouncements that could have an effect on
us.

We had cash,
cash equivalents, and marketable securities totaling $311.9 million and $285.3 million as of March 30, 2018 and June 30, 2017, respectively. We have interest rate risk exposure relating to the interest income generated by excess
cash invested in highly liquid investments with maturities of three months or less from the original dates of purchase. The cash, cash equivalents, and marketable securities are held for working capital purposes. We have not used derivative
financial instruments in our investment portfolio. We have not been exposed nor do we anticipate being exposed to material risks due to changes in market interest rates. Declines in interest rates, however, will reduce future investment income. If
overall interest rates had declined by 10 basis points during the nine months ended March 30, 2018 and March 31, 2017, our interest income would have decreased by approximately $0.2 million and $0.1 million, respectively,
assuming consistent investment levels.

We also have interest rate risk exposure in movements in interest rates associated with our
interest bearing liabilities. The interest bearing liabilities are denominated in U.S. dollars and the interest expense is based on the London Inter-Bank Offered Rate (LIBOR), plus an additional margin, depending on the lending
institution. If the LIBOR had increased by 100 basis points during the nine months ended March 30, 2018 and March 31, 2017, our interest expense would have increased by approximately $0.5 million and $0.5 million, respectively,
assuming consistent borrowing levels.

We therefore entered into an interest rate swap agreement (the Swap Agreement) to
manage this risk and increase the profile of the Companys debt obligation. The terms of the Swap Agreement allow the Company to effectively convert the floating interest rate to a fixed interest rate. This locks the variable in interest
expenses associated with our floating rate borrowings and results in fixed interest expenses which is unsusceptible from market rate increase. As we did not designate the Swap Agreement as a hedging instrument, the net position of gain or loss from
the Swap Agreement is recognized as interest expense in the unaudited condensed consolidated statements of operations and comprehensive income.

We maintain an investment portfolio in a variety of financial instruments, including, but not limited to, U.S. government and agency bonds,
corporate obligations, money market funds, asset-backed securities, and other investment-grade securities. The majority of these investments pay a fixed rate of interest. The securities in the investment portfolio are subject to market price risk
due to changes in interest rates, perceived issuer creditworthiness, marketability, and other factors. These investments are generally classified as available-for-sale
and, consequently, are recorded on our consolidated balance sheets at fair value with unrealized gains or losses reported as a separate component of shareholders equity.

Investments in both fixed-rate and floating-rate interest earning instruments carry a degree of interest rate risk. The fair market values of
our fixed-rate securities decline if interest rates rise, while floating-rate securities may produce less income than expected if interest rates fall. Due in part to these factors, our future investment income may be less than we expect because of
changes in interest rates or we may suffer losses in principal if forced to sell securities that have experienced a decline in market value because of changes in interest rates.

Foreign Currency Risk

As a result
of our foreign operations, we have significant expenses, assets and liabilities that are denominated in foreign currencies. Substantially all of our employees and most of our facilities are located in Thailand, the PRC and the United Kingdom.
Therefore, a substantial portion of our payroll as well as certain other operating expenses are paid in Thai baht, RMB and GBP. The significant majority of our revenues are denominated in U.S. dollars because our customer contracts generally provide
that our customers will pay us in U.S. dollars.

As a consequence, our gross profit margins, operating results, profitability and cash
flows are adversely impacted when the dollar depreciates relative to the Thai baht or the RMB. We have a particularly significant currency rate exposure to changes in the exchange rate between the Thai baht and the U.S. dollar. We must translate
foreign currency-denominated results of operations, assets and liabilities for our foreign subsidiaries to U.S. dollars in our unaudited condensed consolidated financial statements. Consequently, increases and decreases in the value of the U.S.
dollar compared with such foreign currencies will affect our reported results of operations and the value of our assets and liabilities on our unaudited condensed consolidated balance sheets, even if our results of operations or the value of those
assets and liabilities has not changed in its original currency. These transactions could significantly affect the comparability of our results between financial periods or result in significant changes to the carrying value of our assets,
liabilities and shareholders equity.

We attempt to hedge against these exchange rate risks by entering into derivative instruments
that are typically one to eighteen months in duration, leaving us exposed to longer term changes in exchange rates. We recorded unrealized loss of $30 thousand and unrealized loss of $8 thousand related to derivatives that are not
designated as hedging instruments, for the nine months ended March 30, 2018 and March 31, 2017, respectively. As foreign currency exchange rates fluctuate relative to the U.S. dollar, we expect to incur foreign currency translation
adjustments and may incur foreign currency exchange losses. For example, a 10% weakening in the U.S. dollar against the Thai baht, the RMB and the GBP would have resulted in a decrease in our net dollar position of approximately $1.8 million
and $4.8 million as of March 30, 2018 and June 30, 2017, respectively. We cannot give any assurance as to the effect that future changes in foreign currency rates will have on our unaudited condensed consolidated financial position,
operating results or cash flows.

Credit Risk

Credit risk refers to our exposures to financial institutions, suppliers and customers that have in the past and may in the future experience
financial difficulty, particularly in light of recent conditions in the credit markets and the global economy. As of March 30, 2018, our cash and cash equivalents were held in deposits and highly liquid investment products with maturities of
three months or less with banks and other financial institutions having credit ratings of A minus or above. Our marketable securities as of March 30, 2018 are held in various financial institutions with a maturity limit not to exceed three
years, and all securities are rated A1, P-1, F1 or better. We continue to monitor our surplus cash and consider investment in corporate and U.S. government debt as well as certain available for sale securities
in accordance with our investment policy. We generally monitor the financial performance of our suppliers and customers, as well as other factors that may affect their access to capital and liquidity. Presently, we believe that we will not incur
material losses due to our exposures to such credit risk.

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our
disclosure controls and procedures pursuant to Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as of the end of the period covered by this
Quarterly Report on Form 10-Q. Based on that evaluation, our chief executive officer and chief financial officer concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is
recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and include controls and procedures designed to ensure that the information required to be disclosed by us in such
reports is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosures. Managements assessment of the effectiveness
of our internal control over financial reporting is expressed at the level of reasonable assurance because a control system, no matter how well designed and operated, can provide only reasonable, but not absolute, assurance that the control
systems objectives will be met.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the three months ended March 30, 2018 that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

From time to time, we may be involved in litigation relating to claims arising in the ordinary course of our business. There are currently no
material claims or actions pending or threatened against us.

ITEM 1A. RISK FACTORS

Investing in our ordinary shares involves a high degree of risk. You should carefully consider the following risks, as well as the other
information contained in this Quarterly Report on Form 10-Q, including our condensed consolidated financial statements and the related notes, before investing in our ordinary shares. The risks and
uncertainties described below are not the only ones that we may face. Additional risks and uncertainties of which we are unaware, or that we currently deem immaterial, also may become important factors that affect us or our ordinary shares. If any
of the following risks actually occur, they may harm our business, financial condition and operating results. In this event, the market price of our ordinary shares could decline and you could lose some or all of your investment.

Risks Related to Our Business

Our
sales depend on and will continue to depend on a small number of customers. A reduction in orders from any of these customers, the loss of any of these customers, or a customer exerting significant pricing and margin pressures on us could harm our
business, financial condition and operating results.

We have depended, and will continue to depend, upon a small number of
customers for a significant percentage of our total revenues. During the three months ended March 30, 2018 and March 31, 2017, we had one customer that contributed 10% or more of our total revenues. This customer accounted for 17% and 15%
of our total revenues during the respective periods. During the nine months ended March 30, 2018 and March 31, 2017, we had one customer that contributed 10% or more of our total revenues. This customer accounted for 16% and 18% of our
total revenues during the respective periods. Dependence on a small number of customers means that a reduction in orders from, a loss of, or other adverse actions by any one of these customers would reduce our revenues and could have a material
adverse effect on our business, financial condition and operating results.

Further, our customer concentration increases the
concentration of our accounts receivable and our exposure to payment default by any of our key customers. Many of our existing and potential customers have substantial debt burdens, have experienced financial distress or have static or declining
revenues, all of which may be exacerbated by adverse conditions in the credit markets, continual uncertainty in global economies and the impacts of Brexit. Certain of our customers have gone out of business, declared bankruptcy, been acquired, or
announced their withdrawal from segments of the optics market. We generate significant accounts payable and inventory for the services that we provide to our customers, which could expose us to substantial and potentially unrecoverable costs if we
do not receive payment from our customers.

Reliance on a small number of customers gives those customers substantial purchasing power and
leverage in negotiating contracts with us. In addition, although we enter into master supply agreements with our customers, the level of business to be transacted under those agreements is not guaranteed. Instead, we are awarded business under those
agreements on a project-by-project basis. Some of our customers have at times significantly reduced or delayed the volume of manufacturing services that they order from
us. If we are unable to maintain our relationships with our existing significant customers, our business, financial condition and operating results could be harmed.

Consolidation in the markets we serve could harm our business, financial condition and operating results.

Consolidation in the markets we serve has resulted in a reduction in the number of potential customers for our services. For example, in March
2018, Lumentum Holdings Inc. and Oclaro, Inc., both of which are our customers, entered into an agreement for Lumentum to acquire Oclaro. In some cases, consolidation among our customers has led to a reduction in demand for our services as customers
acquired the capacity to manufacture products in-house.

Consolidation among our customers and
their customers may continue and may adversely affect our business, financial condition and operating results in several ways. Consolidation among our customers and their customers may result in a smaller number of large customers whose size and
purchasing power give them increased leverage that may

result in, among other things, decreases in our average selling prices. In addition to pricing pressures, this consolidation may also reduce overall demand for our manufacturing services if
customers obtain new capacity to manufacture products in-house or discontinue duplicate or competing product lines in order to streamline operations. If demand for our manufacturing services decreases, our
business, financial condition and operating results could be harmed.

If the optical communications market does not expand as we
expect, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results.

Our future success as a provider of precision optical, electro-mechanical and electronic manufacturing services for the optical communications
market depends on the continued growth of the optics industry and, in particular, the continued expansion of global information networks, particularly those directly or indirectly dependent upon a fiber optic infrastructure. As part of that growth,
we anticipate that demand for voice, video, and other data services delivered over high-speed connections (both wired and wireless) will continue to increase. Without network and bandwidth growth, the need for enhanced communications products would
be jeopardized. Currently, demand for network services and for high-speed broadband access, in particular, is increasing but growth may be limited by several factors, including, among others: (1) relative strength or weakness of the global
economy or certain countries or regions, (2) an uncertain regulatory environment, and (3) uncertainty regarding long-term sustainable business models as multiple industries, such as the cable, traditional telecommunications, wireless and
satellite industries, offer competing content delivery solutions. The optical communications market also has experienced periods of overcapacity, some of which have occurred even during periods of relatively high network usage and bandwidth demands.
If the factors described above were to slow, stop or reverse the expansion in the optical communications market, our business, financial condition and operating results would be negatively affected.

Natural disasters (like the 2011 flooding in Thailand), epidemics, acts of terrorism and other political and economic developments could
harm our business, financial condition, and operating results.

Natural disasters, such as the 2011 flooding in Thailand, where
most of our manufacturing operations are located, could severely disrupt our manufacturing operations and increase our supply chain costs. These events, over which we have little or no control, could cause a decrease in demand for our services, make
it difficult or impossible for us to manufacture and deliver products and for our suppliers to deliver components allowing us to manufacture those products, require large expenditures to repair or replace our facilities, or create delays and
inefficiencies in our supply chain. For example, the 2011 flooding in Thailand forced us to temporarily shut down all of our manufacturing facilities in Thailand and cease production permanently at our Chokchai facility in Thailand, which adversely
affected our ability to meet our customers demands during fiscal year 2012. In some countries in which we operate, including the PRC and Thailand, potential outbreaks of infectious diseases such as the H1N1 influenza virus, severe acute
respiratory syndrome (SARS) or bird flu could disrupt our manufacturing operations, reduce demand for our customers products and increase our supply chain costs. In addition, increased international political instability, evidenced
by the threat or occurrence of terrorist attacks, enhanced national security measures, conflicts in the Middle East and Asia, strained international relations arising from these conflicts and the related decline in consumer confidence and economic
weakness, may hinder our ability to do business. Any escalation in these events or similar future events may disrupt our operations and the operations of our customers and suppliers, and may affect the availability of materials needed for our
manufacturing services. Such events may also disrupt the transportation of materials to our manufacturing facilities and finished products to our customers. These events have had, and may continue to have, an adverse impact on the U.S. and world
economy in general, and customer confidence and spending in particular, which in turn could adversely affect our total revenues and operating results. The impact of these events on the volatility of the U.S. and world financial markets also could
increase the volatility of the market price of our ordinary shares and may limit the capital resources available to us, our customers and our suppliers.

We are not fully insured against all potential losses. Natural disasters or other catastrophes could adversely affect our business,
financial condition and operating results.

Our current property and casualty insurance covers loss or damage to our property and
third-party property over which we have custody and control, as well as losses associated with business interruption, subject to specified exclusions and limitations such as coinsurance, facilities location
sub-limits and other policy limitations and covenants. Even with insurance coverage, natural disasters or other catastrophic events, including acts of war, could cause us to suffer substantial losses in our
operational capacity and could also lead to a loss of opportunity and to a potential adverse impact on our relationships with our existing customers resulting from our inability to produce products for them, for which we could not be compensated by
existing insurance. This in turn could have a material adverse effect on our business, financial condition and operating results.

Our quarterly revenues, gross profit margins and operating results have fluctuated
significantly and may continue to do so in the future, which may cause the market price of our ordinary shares to decline or be volatile.

Our quarterly revenues, gross profit margins, and operating results have fluctuated significantly and may continue to fluctuate significantly
in the future. For example, any of the risks described in this Risk Factors section and, in particular, the following factors, could cause our quarterly and annual revenues, gross profit margins, and operating results to fluctuate from
period to period:

the cyclicality of the optical communications market, as well as the industrial lasers, medical and sensors markets;



competition;



our ability to achieve favorable pricing for our services;



the effect of fluctuations in foreign currency exchange rates;



our ability to manage our headcount and other costs; and



changes in the relative mix in our revenues.

Therefore, we believe that quarter-to-quarter comparisons of our operating results may not be useful in predicting our future operating results. You should not rely on our results for one quarter as any
indication of our future performance. Quarterly variations in our operations could result in significant volatility in the market price of our ordinary shares.

If we are unable to continue diversifying our precision optical and electro-mechanical manufacturing services across other markets
within the optics industry, such as the semiconductor processing, biotechnology, metrology and material processing markets, or if these markets do not grow as fast as we expect, our business may not grow as fast as we expect, which could adversely
impact our business, financial condition and operating results.

We intend to continue diversifying across other markets within the
optics industry, such as the semiconductor processing, biotechnology, metrology, and material processing markets, to reduce our dependence on the optical communications market and to grow our business. Currently, the optical communications market
contributes the significant majority of our revenues. There can be no assurance that our efforts to further expand and diversify into other markets within the optics industry will prove successful or that these markets will continue to grow as fast
as we expect. In the event that the opportunities presented by these markets prove to be less than anticipated, if we are less successful than expected in diversifying into these markets, or if our margins in these markets prove to be less than
expected, our growth may slow or stall, and we may incur costs that are not offset by revenues in these markets, all of which could harm our business, financial condition and operating results.

We face significant competition in our business. If we are unable to compete successfully against our current and future competitors,
our business, financial condition and operating results could be harmed.

Our current and prospective customers tend to evaluate
our capabilities against the merits of their internal manufacturing as well as the capabilities of other third-party manufacturers. We believe the internal manufacturing capabilities of current and prospective customers are our primary competition.
This competition is particularly strong when our customers have excess manufacturing capacity, as was the case when the markets that we serve experienced a significant downturn in 2008 and 2009 that resulted in underutilized capacity. Should our
existing and potential customers have excess manufacturing capacity at their facilities, it could adversely affect our business. In addition, as a result of the 2011 flooding in Thailand, some of our customers began manufacturing products internally
or using other third-party manufacturers that were not affected by the flooding. If our customers choose to manufacture products internally rather than to outsource production to us, or choose to outsource to a third-party manufacturer, our
business, financial condition and operating results could be harmed.

Technologies, Inc., and Research Electro-Optic, Inc. Our UK competitors for printed circuit board assemblies include STI Limited and Axiom Manufacturing Services Limited. Other existing contract
manufacturing companies, original design manufacturers or outsourced semiconductor assembly and test companies could also enter our target markets. In addition, we may face more competitors as we attempt to penetrate new markets.

Many of our customers and potential competitors have longer operating histories, greater name recognition, larger customer bases and
significantly greater resources than we have. These advantages may allow them to devote greater resources than we can to the development and promotion of service offerings that are similar or superior to our service offerings. These competitors may
also engage in more extensive research and development, undertake more far-reaching marketing campaigns, adopt more aggressive pricing policies or offer services that achieve greater market acceptance than
ours. These competitors may also compete with us by making more attractive offers to our existing and potential employees, suppliers, and strategic partners. Further, consolidation in the optics industry could lead to larger and more geographically
diverse competitors. New and increased competition could result in price reductions for our services, reduced gross profit margins or loss of market share. We may not be able to compete successfully against our current and future competitors, and
the competitive pressures we face may harm our business, financial condition and operating results.

Cancellations, delays or
reductions of customer orders and the relatively short-term nature of the commitments of our customers could harm our business, financial condition and operating results.

We do not typically obtain firm purchase orders or commitments from our customers that extend beyond 13 weeks. While we work closely with our
customers to develop forecasts for periods of up to one year, these forecasts are not binding and may be unreliable. Customers may cancel their orders, change production quantities from forecasted volumes or delay production for a number of reasons
beyond our control. Any material delay, cancellation or reduction of orders could cause our revenues to decline significantly and could cause us to hold excess materials. Many of our costs and operating expenses are fixed. As a result, a reduction
in customer demand could decrease our gross profit and harm our business, financial condition and operating results.

In addition, we make
significant decisions, including production schedules, material procurement commitments, personnel needs and other resource requirements, based on our estimate of our customers requirements. The short-term nature of our customers
commitments and the possibility of rapid changes in demand for their products reduce our ability to accurately estimate the future requirements of our customers. Inability to forecast the level of customer orders with certainty makes it difficult to
allocate resources to specific customers, order appropriate levels of materials and maximize the use of our manufacturing capacity. This could also lead to an inability to meet a spike in production demand, all of which could harm our business,
financial condition and operating results.

We provide manufacturing services to companies, and rely on suppliers, that have in the
past and may in the future experience financial difficulty, particularly in light of uncertainty in the credit markets and the overall economy that affected access to capital and liquidity. As a result, we devote significant resources to monitor
receivables and inventory balances with certain of our customers. If our customers experience financial difficulty, we could have difficulty recovering amounts owed to us from these customers, or demand for our services from these customers could
decline. If our suppliers experience financial difficulty, we could have trouble sourcing materials necessary to fulfill production requirements and meet scheduled shipments. Any such financial difficulty could adversely affect our operating results
and financial condition by resulting in a reduction in our revenues, a charge for inventory write-offs, a provision for doubtful accounts, and an increase in working capital requirements due to increases in days in inventory and in days in accounts
receivable. For example, in July 2014, one of our customers filed for bankruptcy protection under the Local Trade Court in France; however, the potential losses from this particular customer did not have a significant effect on our unaudited
condensed consolidated financial statements.

Volatility in
the functional and non-functional currencies of our entities and the U.S. dollar could seriously harm our business, financial condition, and operating results. The primary impact of currency exchange
fluctuations is on our cash, receivables, and payables of our operating entities. We may experience significant unexpected losses from fluctuations in exchange rates. For example, in the three months ended March 30, 2018, we experienced a
$2.4 million foreign exchange loss, which negatively affected our net income per share by $0.06.

Our customer contracts generally require that our customers pay us in U.S. dollars. However, the
majority of our payroll and other operating expenses are paid in Thai baht. As a result of these arrangements, we have significant exposure to changes in the exchange rate between the Thai baht and the U.S. dollar, and our operating results are
adversely impacted when the U.S. dollar depreciates relative to the Thai baht and other currencies. We have experienced such depreciation in the U.S. dollar as compared with the Thai baht, and our results have been adversely impacted by this
fluctuation in exchange rates. As of March 30, 2018, the U.S. dollar had depreciated approximately 11.6% against the Thai baht since March 25, 2016. Further, while we attempt to hedge against certain exchange rate risks, we typically enter
into hedging contracts with maturities of up to 12 months, leaving us exposed to longer term changes in exchange rates.

Also, we have
significant exposure to changes in the exchange rate between the RMB and GBP and the U.S. dollar. The expenses of our subsidiaries located in the PRC and UK are denominated in RMB and GBP, respectively. Currently, RMB are convertible in connection
with trade- and service-related foreign exchange transactions, foreign debt service, and payment of dividends. The PRC government may at its discretion restrict access in the future to foreign currencies for current account transactions. If this
occurs, our PRC subsidiary may not be able to pay us dividends in U.S. dollars without prior approval from the PRC State Administration of Foreign Exchange. In addition, conversion of RMB for most capital account items, including direct investments,
is still subject to government approval in the PRC. This restriction may limit our ability to invest the earnings of our PRC subsidiary. As of March 30, 2018, the U.S. dollar had appreciated approximately 0.9% against the RMB since
March 25, 2016. There remains significant international pressure on the PRC government to adopt a substantially more liberalized currency policy. GBP are convertible in connection with trade- and service-related foreign exchange transactions
and foreign debt service. As of March 30, 2018, the U.S. dollar had depreciated approximately 8.3% against the GBP since September 14, 2016, the date we acquired Fabrinet UK. Any appreciation in the value of the RMB and GBP against the
U.S. dollar could negatively impact our operating results.

We purchase some of the critical materials used in certain of our
products from a single source or a limited number of suppliers. Supply shortages have in the past, and could in the future, impair the quality, reduce the availability or increase the cost of materials, which could harm our revenues, profitability
and customer relations.

We rely on a single source or a limited number of suppliers for critical materials used in a significant
number of the products we manufacture. We generally purchase these single or limited source materials through standard purchase orders and do not maintain long-term supply agreements with our suppliers. We generally use a rolling 12 month forecast
based on anticipated product orders, customer forecasts, product order history, backlog, and warranty and service demand to determine our materials requirements. Lead times for the parts and components that we order vary significantly and depend on
factors such as manufacturing cycle times, manufacturing yields, and the availability of raw materials used to produce the parts or components. Historically, we have experienced supply shortages resulting from various causes, including reduced
yields by our suppliers, which prevented us from manufacturing products for our customers in a timely manner. Our revenues, profitability and customer relations could be harmed by a stoppage or delay of supply, a substitution of more expensive or
less reliable parts, the receipt of defective parts or contaminated materials, an increase in the price of supplies, or an inability to obtain reductions in price from our suppliers in response to competitive pressures.

We continue to undertake programs to strengthen our supply chain. Nevertheless, we are experiencing, and expect for the foreseeable future to
continue to experience, strain on our supply chain, and periodic supplier problems. We have incurred, and expect to continue to incur for the foreseeable future, costs to address these problems.

Managing our inventory is complex and may require write-downs due to excess or obsolete inventory, which could cause our operating
results to decrease significantly in a given fiscal period.

Managing our inventory is complex. We are generally required to
procure material based upon the anticipated demand of our customers. The inaccuracy of these forecasts or estimates could result in excess supply or shortages of certain materials. Inventory that is not used or expected to be used as and when
planned may become excess or obsolete. Generally, we are unable to use most of the materials purchased for one of our customers to manufacture products for any of our other customers. Additionally, we could experience reduced or delayed product
shipments or incur additional inventory write-downs and cancellation charges or penalties, which would increase costs and could harm our business, financial condition and operating results. While our agreements with customers are structured to
mitigate our risks related to excess or obsolete inventory, enforcement of these provisions may result in material expense, and delay in payment for inventory. If any of our significant customers becomes unable or unwilling to purchase inventory or
does not agree to such contractual provisions in the future, our business, financial condition and operating results may be harmed.

We conduct operations in a number of countries, which creates logistical and communications challenges for us and exposes us to other
risks that could harm our business, financial condition and operating results.

The vast majority of our operations, including manufacturing and customer support, are located
primarily in the Asia-Pacific region. The distances between Thailand, the PRC and our customers and suppliers globally, create a number of logistical and communications challenges for us, including managing operations across multiple time zones,
directing the manufacture and delivery of products across significant distances, coordinating the procurement of raw materials and their delivery to multiple locations and coordinating the activities and decisions of our management team, the members
of which are based in different countries.

Our customers are located throughout the world. Total revenues from the bill-to-location of customers outside of North America accounted for 51.6% and 57.8% of our total revenues for the three months ended March 30, 2018 and March 31,
2017, respectively, and 54.2% and 54.4% of our total revenues for the nine months ended March 30, 2018 and March 31, 2017, respectively. We expect that total revenues from the
bill-to-location of customers outside of North America will continue to account for a significant portion of our total revenues. Our customers also depend on
international sales, which further exposes us to the risks associated with international operations. In addition, our international operations and sales subject us to a variety of domestic and foreign trade regulatory requirements.

Political unrest and demonstrations, as well as changes in the political, social, business or economic conditions in Thailand, could
harm our business, financial condition and operating results.

The majority of our assets and manufacturing operations are located
in Thailand. Therefore, political, social, business and economic conditions in Thailand have a significant effect on our business. In March 2018, Thailand was assessed as a medium-high overall risk by AON Political Risk, a risk management, insurance
and consulting firm. Any changes to tax regimes, laws, exchange controls or political action in Thailand may harm our business, financial condition and operating results.

Thailand has a history of political unrest that includes the involvement of the military as an active participant in the ruling government. In
recent years, political unrest in the country has sparked political demonstrations and, in some instances, violence. In May 2014, the Thai military took over the government in a coup, and it continues to rule the country today. It is unknown how
long it may take for the current political situation to be resolved and for democracy to be restored, or what effects the current political situation may have on Thailand and the surrounding region. In October 2016, Thailands King Bhumibol
Adulyadej died at the age of 88, and was recently succeeded by his son King Maha Vajiralongkorn. While this was a peaceful succession, any future succession crisis or political instability in the Kingdom of Thailand could prevent shipments from
entering or leaving the country, disrupt our ability to manufacture products in Thailand, and force us to transfer our operations to more stable, and potentially more costly, regions.

Further, the Thai government may raise the minimum wage standards for labor and could repeal certain promotional certificates that we have
received or tax holidays for certain export and value added taxes that we enjoy, either preventing us from engaging in our current or anticipated activities or subjecting us to higher tax rates. A new regime could nationalize our business or
otherwise seize our assets and any other future political instability could harm our business, financial condition and operating results.

We expect to continue to invest in our manufacturing operations in the PRC, which will continue to expose us to risks inherent in doing
business in the PRC, any of which risks could harm our business, financial condition and operating results.

We anticipate that we
will continue to invest in our customized optics manufacturing facilities located in Fuzhou, China. Because these operations are located in the PRC, they are subject to greater political, legal and economic risks than the geographies in which the
facilities of many of our competitors and customers are located. In particular, the political and economic climate in the PRC (both at national and regional levels) is fluid and unpredictable. In March 2018, AON Political Risk assessed the PRC as a
medium overall risk. A large part of the PRCs economy is still being operated under varying degrees of control by the PRC government. By imposing industrial policies and other economic measures, such as control of foreign exchange, taxation,
import and export tariffs, environmental regulations, land use rights, intellectual property and restrictions on foreign participation in the domestic market of various industries, the PRC government exerts considerable direct and indirect influence
on the development of the PRC economy. Many of the economic reforms carried out by the PRC government are unprecedented or experimental and are expected to change further. Any changes to the political, legal or economic climate in the PRC could harm
our business, financial condition and operating results.

Our PRC subsidiary is a wholly foreign-owned enterprise and is
therefore subject to laws and regulations applicable to foreign investment in the PRC, in general, and laws and regulations applicable to wholly foreign-owned enterprises, in particular. The PRC has made significant progress in the promulgation of
laws and regulations pertaining to economic matters such as corporate organization and governance, foreign investment, commerce, taxation and trade. However, the promulgation of new laws, changes in existing laws and abrogation of local regulations
by national laws may have a negative impact on our business and prospects. In addition, these laws and regulations are relatively new, and published cases are limited in volume and non-binding. Therefore, the
interpretation and enforcement of these laws and regulations involve significant uncertainties. Laws may be changed with little or no prior notice, for political or other reasons. These uncertainties could limit the legal protections available to
foreign investors. Furthermore, any litigation in the PRC may be protracted and result in substantial costs and diversion of resources and managements attention.

Our business and operations would be adversely impacted in the event of a failure of our
information technology infrastructure and/or cyber security attacks.

We rely upon the capacity, availability and security of our
information technology hardware and software infrastructure. For instance, we use a combination of standard and customized software platforms to manage, record, and report all aspects of our operations and, in many instances, enable our customers to
remotely access certain areas of our databases to monitor yields, inventory positions, work-in-progress status and vendor quality data. We are constantly expanding and
updating our information technology infrastructure in response to our changing needs. Any failure to manage, expand and update our information technology infrastructure or any failure in the operation of this infrastructure could harm our business.

Despite our implementation of security measures, our systems are vulnerable to damages from computer viruses, natural disasters,
unauthorized access and other similar disruptions. Any system failure, accident or security breach could result in disruptions to our operations. To the extent that any disruptions, cyber-attack or other security breach results in a loss or damage
to our data, or inappropriate disclosure of confidential information, it could harm our business. In addition, we may be required to incur significant costs to protect against damage caused by these disruptions or security breaches in the future.

Volatility and disruption in the capital and credit markets, depressed consumer confidence, and negative global economic
conditions have affected levels of business and consumer spending. Concerns about the potential default of various national bonds and debt backed by individual countries as well as the politics impacting these, could negatively impact the U.S. and
global economies and adversely affect our financial results. In particular, Brexit and economic uncertainty in Europe has led to reduced demand in some of our customers optical communications product portfolios. Brexit could also lead to
economic and legal uncertainty, including significant volatility in global stock markets and currency exchange rates, and increasingly divergent laws and regulations as the United Kingdom determines which European Union laws to replace or replicate.
Any of these effects of Brexit, among others, could adversely affect our financial results. If economic conditions in Europe do not recover or if they continue to deteriorate, our operating results could be harmed.

Uncertainty about worldwide economic conditions poses a risk as businesses may further reduce or postpone spending in response to reduced
budgets, tight credit, negative financial news and declines in income or asset values, which could adversely affect our business, financial condition and operating results and increase the volatility of our share price. In addition, our ability to
access capital markets may be restricted, which could have an impact on our ability to react to changing economic and business conditions and could also adversely affect our business, financial condition and operating results.

If we fail to adequately expand our manufacturing capacity, we will not be able to grow our business, which would harm our business,
financial condition and operating results. Conversely, if we expand too much or too rapidly, we may experience excess capacity, which would harm our business, financial condition and operating results.

We may not be able to pursue many large customer orders or sustain our historical growth rates if we do not have sufficient manufacturing
capacity to enable us to commit to provide customers with specified quantities of products. If our customers do not believe that we have sufficient manufacturing capacity, they may: (1) outsource all of their production to another source that
they believe can fulfill all of their production requirements; (2) look to a second source for the manufacture of additional quantities of the products that we currently manufacture for them; (3) manufacture the products themselves; or
(4) otherwise decide against using our services for their new products.

Most recently, we expanded our manufacturing capacity with a
new facility in Chonburi, Thailand. We may continue to devote significant resources to the expansion of our manufacturing capacity, and any such expansion will be expensive, will require managements time and may disrupt our operations. In the
event we are unsuccessful in our attempts to expand our manufacturing capacity, our business, financial condition and operating results could be harmed.

However, if we expand our manufacturing capacity and are unable to promptly utilize the additional space due to reduced demand for our
services, an inability to win new projects, new customers or penetrate new markets, or if the optics industry does not grow as we expect, we may experience periods of excess capacity, which could harm our business, financial condition and operating
results.

We may experience manufacturing yields that are lower than expected, potentially resulting
in increased costs, which could harm our business, operating results and customer relations.

Manufacturing yields depend on a
number of factors, including the following:



the quality of input, materials and equipment;



the quality and feasibility of our customers design;



the repeatability and complexity of the manufacturing process;



the experience and quality of training of our manufacturing and engineering teams; and



the monitoring of the manufacturing environment.

Lower volume production due to continually
changing designs generally results in lower yields. Manufacturing yields and margins can also be lower if we receive or inadvertently use defective or contaminated materials from our suppliers. In addition, our customer contracts typically provide
that we will supply products at a fixed price each quarter, which assumes specific production yields and quality metrics. If we do not meet the yield assumptions and quality metrics used in calculating the price of a product, we may not be able to
recover the costs associated with our failure to do so. Consequently, our operating results and profitability may be harmed.

If the
products that we manufacture contain defects, we could incur significant correction costs, demand for our services may decline and we may be exposed to product liability and product warranty claims, which could harm our business, financial
condition, operating results and customer relations.

We manufacture products to our customers specifications, and our
manufacturing processes and facilities must comply with applicable statutory and regulatory requirements. In addition, our customers products and the manufacturing processes that we use to produce them are often complex. As a result, products
that we manufacture may at times contain manufacturing or design defects, and our manufacturing processes may be subject to errors or fail to be in compliance with applicable statutory or regulatory requirements. Additionally, not all defects are
immediately detectible. The testing procedures of our customers are generally limited to the evaluation of the products that we manufacture under likely and foreseeable failure scenarios. For various reasons (including, among others, the occurrence
of performance problems that are unforeseeable at the time of testing or that are detected only when products are fully deployed and operated under peak stress conditions), these products may fail to perform as expected after their initial
acceptance by a customer.

We generally provide a warranty of between one to five years on the products that we manufacture for our
customers. This warranty typically guarantees that products will conform to our customers specifications and be free from defects in workmanship. Defects in the products we manufacture, whether caused by a design, engineering, manufacturing or
component failure or by deficiencies in our manufacturing processes and whether during or after the warranty period, could result in product or component failures, which may damage our business reputation, whether or not we are indemnified for such
failures. We could also incur significant costs to repair or replace defective products under warranty, particularly when such failures occur in installed systems. In some instances, we may also be required to incur costs to repair or replace
defective products outside of the warranty period in the event that a recurring defect is discovered in a certain percentage of a customers products delivered over an agreed upon period of time. We have experienced product or component
failures in the past and remain exposed to such failures, as the products that we manufacture are widely deployed throughout the world in multiple environments and applications. Further, due to the difficulty in determining whether a given defect
resulted from our customers design of the product or our manufacturing process, we may be exposed to product liability or product warranty claims arising from defects that are not our fault. In addition, if the number or type of defects
exceeds certain percentage limitations contained in our contractual arrangements, we may be required to conduct extensive failure analysis, re-qualify for production or cease production of the specified
products.

Product liability claims may include liability for personal injury or property damage. Product warranty claims may include
liability to pay for a recall, repair or replacement of a product or component. Although liability for these claims is generally assigned to our customers in our contracts, even where they have assumed liability, our customers may not, or may not
have the resources to, satisfy claims for costs or liabilities arising from a defective product. Additionally, under one of our contracts, in the event the products we manufacture do not meet the
end-customers testing requirements or otherwise fail, we may be required to pay penalties to our customer, including a fee during the time period that the customer or
end-customers production line is not operational as a result of the failure of the products that we manufacture, all of which could harm our business, operating results and customer relations. If we
engineer or manufacture a product that is found to cause any personal injury or property damage or is otherwise found to be

defective, we could incur significant costs to resolve the claim. While we maintain insurance for certain product liability claims, we do not maintain insurance for any recalls and, therefore,
would be required to pay any associated costs that are determined to be our responsibility. A successful product liability or product warranty claim in excess of our insurance coverage or any material claim for which insurance coverage is denied,
limited, is not available or has not been obtained could harm our business, financial condition and operating results.

If we are
unable to meet regulatory quality standards applicable to our manufacturing and quality processes for the products we manufacture, our business, financial condition or operating results could be harmed.

As a manufacturer of products for the optics industry, we are required to meet certain certification standards, including the following:
ISO9001 for Manufacturing Quality Management Systems; ISO14001 for Environmental Management Systems; TL9000 for Telecommunications Industry Quality Certification; ISO/TS16949 for Automotive Industry Quality Certification; ISO13485 for Medical
Devices Industry Quality Certification; AS9100 for Aerospace Industry Quality Certification; and OHSAS18001 for Occupational Health and Safety Management Systems. We also maintain compliance with various additional standards imposed by the U.S. Food
and Drug Administration, or FDA, with respect to the manufacture of medical devices.

Additionally, we are required to register with the
FDA and other regulatory bodies and are subject to continual review and periodic inspection for compliance with various regulations, including testing, quality control and documentation procedures. We hold the following additional certifications:
ANSI ESD S20.20 for facilities and manufacturing process control, in compliance with ESD standard; Transported Asset Protection Association, or TAPA, for Logistic Security Management System; and CSR-DIW for
Corporate Social Responsibility in Thailand. In the European Union, we are required to maintain certain ISO certifications in order to sell our precision optical, electro-mechanical and electronic manufacturing services and we must undergo periodic
inspections by regulatory bodies to obtain and maintain these certifications. If any regulatory inspection reveals that we are not in compliance with applicable standards, regulators may take action against us, including issuing a warning letter,
imposing fines on us, requiring a recall of the products we manufactured for our customers, or closing our manufacturing facilities. If any of these actions were to occur, it could harm our reputation as well as our business, financial condition and
operating results.

Our future success depends, in part, upon our ability to attract additional skilled employees
and retain our current key personnel. We have identified several areas where we intend to expand our hiring, including business development, finance, human resources, operations and supply chain management. We may not be able to hire and retain such
personnel at compensation levels consistent with our existing compensation and salary structure. Our future also depends on the continued contributions of our executive management team and other key management and technical personnel, each of whom
would be difficult to replace. Although we have key person life insurance policies on some of our executive officers, the loss of any of our executive officers or key personnel or the inability to continue to attract qualified personnel could harm
our business, financial condition and operating results.

Failure to comply with applicable environmental laws and regulations could
have a material adverse effect on our business, financial condition and operating results.

The sale and manufacturing of products
in certain states and countries may subject us to environmental laws and regulations. In addition, rules adopted by the U.S. Securities and Exchange Commission (SEC) implementing the Dodd-Frank Wall Street Reform and Consumer Protection
Act of 2010 impose diligence and disclosure requirements regarding the use of conflict minerals mined from the Democratic Republic of Congo and adjoining countries in the products we manufacture for our customers. Compliance with these
rules has resulted in additional cost and expense, including for due diligence to determine and verify the sources of any conflict minerals used in the products we manufacture, and may result in additional costs of remediation and other changes to
processes or sources of supply as a consequence of such verification activities. These rules may also affect the sourcing and availability of minerals used in the products we manufacture, as there may be only a limited number of suppliers offering
conflict free metals that can be used in the products we manufacture for our customers.

Although we do not anticipate any
material adverse effects based on the nature of our operations and these laws and regulations, we will need to ensure that we and, in some cases, our suppliers comply with applicable laws and regulations. If we fail to timely comply with such laws
and regulations, our customers may cease doing business with us, which would have a material adverse effect on our business, financial condition and operating results. In addition, if we were found to be in violation of these laws, we could be
subject to governmental fines, liability to our customers and damage to our reputation, which would also have a material adverse effect on our business, financial condition and operating results.

We are subject to the risk of increased income taxes, which could harm our business,
financial condition and operating results.

We are subject to income and other taxes in Thailand, the PRC, the United Kingdom and
the United States. Our effective income tax rate, provision for income taxes and future tax liability could be adversely affected by numerous factors, including the results of tax audits and examinations, income before taxes being lower than
anticipated in countries with lower statutory tax rates and higher than anticipated in countries with higher statutory tax rates, changes in income tax rates, changes in the valuation of deferred tax assets and liabilities, failure to meet
obligations with respect to tax exemptions, and changes in tax laws and regulations. Our U.S. federal and state tax returns remain open to examination for the tax years 2014 through 2016. In addition, tax returns that remain open to examination in
Thailand, the PRC and the United Kingdom range from the tax years 2012 through 2017. The results of audits and examinations of previously filed tax returns and continuing assessments of our tax exposures may have an adverse effect on our provision
for income taxes and tax liability.

We base our tax position upon the anticipated nature and conduct of our business and upon our
understanding of the tax laws of the various countries in which we have assets or conduct activities. However, our tax position is subject to review and possible challenge by tax authorities and to possible changes in law, which may have retroactive
effect. Fabrinet (the Cayman Islands Parent) is an exempted company incorporated in the Cayman Islands. We maintain manufacturing operations in Thailand, the PRC, the United Kingdom and the United States. We cannot determine in advance
the extent to which some jurisdictions may require us to pay taxes or make payments in lieu of taxes. Preferential tax treatment from the Thai government in the form of a corporate tax exemption is currently available to us through June 2020 and
June 2026 on income generated from projects to manufacture certain products at our Pinehurst campus and Chonburi campus, respectively. Such preferential tax treatment is contingent on various factors, including the export of our customers
products out of Thailand and our agreement not to move our manufacturing facilities out of our current province in Thailand for at least 15 years from the date on which preferential tax treatment was granted (i.e., at least until June 2020 in the
case of our Pinehurst campus and until June 2026 in the case of our Chonburi campus). We will lose this favorable tax treatment in Thailand unless we comply with these restrictions, and as a result we may delay or forego certain strategic business
decisions due to these tax considerations.

There is also a risk that Thailand or another jurisdiction in which we operate may treat the
Cayman Islands Parent as having a permanent establishment in such jurisdiction and subject its income to tax. If we become subject to additional taxes in any jurisdiction or if any jurisdiction begins to treat the Cayman Islands Parent as having a
permanent establishment, such tax treatment could materially and adversely affect our business, financial condition and operating results.

Certain of our subsidiaries provide products and services to, and may from time to time undertake certain significant transactions with, us
and our other subsidiaries in different jurisdictions. For instance, we have intercompany agreements in place that provide for our California and Singapore subsidiaries to provide administrative services for the Cayman Islands Parent, and the Cayman
Islands Parent has entered into manufacturing agreements with our Thai subsidiary. In general, related party transactions and, in particular, related party financing transactions, are subject to close review by tax authorities. Moreover, several
jurisdictions in which we operate have tax laws with detailed transfer pricing rules that require all transactions with non-resident related parties to be priced using arms length pricing principles and
require the existence of contemporaneous documentation to support such pricing. Tax authorities in various jurisdictions could challenge the validity of our related party transfer pricing policies. Such a challenge generally involves a complex area
of taxation and a significant degree of judgment by management. If any taxation authorities are successful in challenging our financing or transfer pricing policies, our income tax expense may be adversely affected and we could become subject to
interest and penalty charges, which may harm our business, financial condition and operating results.

On December 22, 2017, the Tax
Cuts and Jobs Act (the TCJ Act) was enacted into law. The TCJ Act provides for significant changes to the U.S. Internal Revenue Code of 1986, as amended (the Code), that impact corporate taxation requirements, such as the
reduction of the federal tax rate for corporations from 35% to 21% and changes or limitations to certain tax deductions. While we are able to make reasonable estimates of the impact of the reduction in corporate rate, the final impact of the TCJ Act
may differ from these estimates, due to, among other things, changes in our interpretations and assumptions, additional guidance that may be issued by the I.R.S., and actions we may take.

We may encounter difficulties completing or integrating acquisitions, asset purchases and other types of transactions that we may pursue
in the future, which could disrupt our business, cause dilution to our shareholders and harm our business, financial condition and operating results.

We have grown and may continue to grow our business through acquisitions, asset purchases and
other types of transactions, including the transfer of products from our customers and their suppliers. Most recently, we acquired Fabrinet UK in September 2016. Acquisitions and other strategic transactions typically involve many risks, including
the following:



the integration of the acquired assets, information systems and facilities into our business may be difficult, time-consuming and costly, and may adversely impact our profitability;



we may lose key employees of the acquired companies or divisions;



we may issue additional ordinary shares, which would dilute our current shareholders percentage ownership in us;



we may incur indebtedness to pay for the transactions;



we may assume liabilities, some of which may be unknown at the time of the transactions;



we may record goodwill and non-amortizable intangible assets that will be subject to impairment testing and potential periodic impairment charges;



we may incur amortization expenses related to certain intangible assets;



we may devote significant resources to transactions that may not ultimately yield anticipated benefits;



we may incur greater than expected expenses or lower than expected revenues;



we may assume obligations with respect to regulatory requirements, including environmental regulations, which may prove more burdensome than expected; or



we may become subject to litigation.

Acquisitions are inherently risky, and we can provide no
assurance that the acquisition of Fabrinet UK or any future acquisitions will be successful or will not harm our business, financial condition and operating results.

We may not be able to obtain capital when desired on favorable terms, if at all, or without dilution to our shareholders.

We anticipate that our current cash and cash equivalents, together with cash provided by operating activities and funds available through our
working capital and credit facilities, will be sufficient to meet our current and anticipated needs for general corporate purposes for at least the next 12 months. We operate in a market, however, that makes our prospects difficult to evaluate. It
is possible that we may not generate sufficient cash flow from operations or otherwise have the capital resources to meet our future capital needs. If this occurs, we may need additional financing to execute on our current or future business
strategies.

Furthermore, if we raise additional funds through the issuance of equity or convertible debt securities, the percentage
ownership of our shareholders could be significantly diluted, and these newly-issued securities may have rights, preferences or privileges senior to those of existing shareholders. If adequate additional funds are not available or are not available
on acceptable terms, if and when needed, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our manufacturing services, hire additional technical and other personnel, or otherwise respond to
competitive pressures could be significantly limited.

Our services involve the creation and use of intellectual property
rights, which subject us to the risk of intellectual property infringement claims from third parties and claims arising from the allocation of intellectual property rights among us and our customers.

Our customers may require that we indemnify them against the risk of intellectual property infringement arising out of our manufacturing
processes. If any claims are brought against us or our customers for such infringement, whether or not these claims have merit, we could be required to expend significant resources in defense of such claims. In the event of an infringement claim, we
may be required to spend a significant amount of time and money to develop non-infringing alternatives or obtain licenses. We may not be successful in developing such alternatives or obtaining such licenses on
reasonable terms or at all, which could harm our business, financial condition and operating results.

Any failure to protect our customers intellectual property that we use in the
products we manufacture for them could harm our customer relationships and subject us to liability.

We focus on manufacturing
complex optical products for our customers. These products often contain our customers intellectual property, including trade secrets and know-how. Our success depends, in part, on our ability to protect
our customers intellectual property. We may maintain separate and secure areas for customer proprietary manufacturing processes and materials and dedicate floor space, equipment, engineers and supply chain management to protect our
customers proprietary drawings, materials and products. The steps we take to protect our customers intellectual property may not adequately prevent its disclosure or misappropriation. If we fail to protect our customers
intellectual property, our customer relationships could be harmed and we may experience difficulty in establishing new customer relationships. In addition, our customers might pursue legal claims against us for any failure to protect their
intellectual property, possibly resulting in harm to our reputation and our business, financial condition and operating results.

We
have incurred and will continue to incur significant increased costs as a result of operating as a public company, and our management will be required to continue to devote substantial time to various compliance initiatives.

The Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as well as other rules implemented by
the SEC and the New York Stock Exchange (NYSE), impose various requirements on public companies, including requiring changes in corporate governance practices. These and proposed corporate governance laws and regulations under
consideration may further increase our compliance costs. If compliance with these various legal and regulatory requirements diverts our managements attention from other business concerns, it could have a material adverse effect on our
business, financial condition and operating results. The Sarbanes-Oxley Act requires, among other things, that we assess the effectiveness of our internal control over financial reporting annually and disclosure controls and procedures quarterly.
While we were able to assert in our Annual Report on Form 10-K that our internal control over financial reporting was effective as of June 30, 2017, we cannot predict the outcome of our testing in future
periods. If we are unable to assert in any future reporting periods that our internal control over financial reporting is effective (or if our independent registered public accounting firm is unable to express an opinion on the effectiveness of our
internal controls), we could lose investor confidence in the accuracy and completeness of our financial reports, which would have an adverse effect on our share price.

Given the nature and complexity of our business and the fact that some members of our management team are located in Thailand while others are
located in the United States, control deficiencies may periodically occur. For example, following an internal investigation by the Audit Committee of our board of directors in September 2014 concerning various accounting cut-off issues, we identified certain significant deficiencies in our internal control over financial reporting, which have been remediated. While we have ongoing measures and procedures to prevent and remedy
control deficiencies, if they occur there can be no assurance that we will be successful or that we will be able to prevent material weaknesses or significant deficiencies in our internal control over financial reporting in the future. Moreover, if
we identify deficiencies in our internal control over financial reporting that are deemed to be material weaknesses in future periods, the market price of our ordinary shares could decline and we could be subject to potential delisting by the NYSE
and review by the NYSE, the SEC, or other regulatory authorities, which would require the expenditure by us of additional financial and management resources. As a result, our shareholders could lose confidence in our financial reporting, which would
harm our business and the market price of our ordinary shares.

There are inherent uncertainties involved in estimates, judgments and
assumptions used in the preparation of financial statements in accordance with U.S. GAAP. Any changes in estimates, judgments and assumptions could have a material adverse effect on our business, financial condition and operating results.

The preparation of financial statements in accordance with U.S. GAAP involves making estimates, judgments and assumptions that
affect reported amounts of assets (including intangible assets), liabilities and related reserves, revenues, expenses and income. Estimates, judgments and assumptions are inherently subject to change in the future, and any such changes could result
in corresponding changes to the amounts of assets, liabilities, revenues, expenses and income. Any such changes could have a material adverse effect on our business, financial condition and operating results.

We are subject to governmental export and import controls in several jurisdictions that could subject us to liability or impair our
ability to compete in international markets.

We are subject to governmental export and import controls in Thailand, the PRC, the
United Kingdom and the United States that may limit our business opportunities. Various countries regulate the import of certain technologies and have enacted laws that could limit our ability to export or sell the products we manufacture. The
export of certain technologies from the United States, the United Kingdom and other nations to the PRC is barred by applicable export controls, and similar prohibitions could be extended to Thailand, thereby limiting our ability to manufacture
certain

products. Any change in export or import regulations or related legislation, shift in approach to the enforcement of existing regulations, or change in the countries, persons or technologies
targeted by such regulations, could limit our ability to offer our manufacturing services to existing or potential customers, which could harm our business, financial condition and operating results.

The loan agreements for our long-term and short-term debt obligations contain financial ratio
covenants that may limit managements discretion with respect to certain business matters. These covenants require us to maintain a specified debt-to-equity ratio,
debt service coverage ratio (earnings before interest and depreciation and amortization plus cash on hand minus short-term debt), a minimum tangible net worth and a minimum quick ratio, which may restrict our ability to incur additional indebtedness
and limit our ability to use our cash. In the event of our default on these loans or a breach of a covenant, the lenders may immediately cancel the loan agreement, deem the full amount of the outstanding indebtedness immediately due and payable,
charge us interest on a monthly basis on the full amount of the outstanding indebtedness and, if we cannot repay all of our outstanding obligations, sell the assets pledged as collateral for the loan in order to fulfill our obligation. We may also
be held responsible for any damages and related expenses incurred by the lender as a result of any default. Any failure by us or our subsidiaries to comply with these agreements could harm our business, financial condition and operating results.

Our investment portfolio may become impaired by deterioration of the capital markets.

We use professional investment management firms to manage our excess cash and cash equivalents. Our marketable securities as of March 30,
2018 are primarily investments in a fixed income portfolio, including corporate bonds and commercial paper, U.S. agency and U.S. Treasury securities, and sovereign and municipal securities. Our investment portfolio may become impaired by
deterioration of the capital markets. We follow an established investment policy and set of guidelines to monitor and help mitigate our exposure to interest rate and credit risk. The policy sets forth credit quality standards and limits our exposure
to any one issuer, as well as our maximum exposure to various asset classes. The policy also provides that we may not invest in marketable securities with a maturity in excess of three years.

We regularly review our investment portfolio to determine if any security is other-than-temporarily impaired, which would require us to record
an impairment charge in the period any such determination is made. In making this judgment, we evaluate, among other things, the duration and extent to which the fair value of a security is less than its cost; the financial condition of the issuer
and any changes thereto; and our intent to sell, or whether we will more likely than not be required to sell, the security before recovery of its amortized cost basis. Our assessment on whether a security is other-than-temporarily impaired could
change in the future due to new developments or changes in assumptions related to any particular security.

Should financial market
conditions worsen, investments in some financial instruments may pose risks arising from market liquidity and credit concerns. In addition, any deterioration of the capital markets could cause our other income and expense to vary from expectations.
As of March 30, 2018, we did not record any impairment charges associated with our investment portfolio of marketable securities, and although we believe our current investment portfolio has little risk of material impairment, we cannot predict
future market conditions or market liquidity, or credit availability, and can provide no assurance that our investment portfolio will remain materially unimpaired.

We, along with our suppliers and customers, rely on various energy sources in our manufacturing and transportation activities. Energy prices
have been subject to increases and volatility caused by market fluctuations, supply and demand, currency fluctuation, production and transportation disruption, world events and government regulations. While we are currently experiencing lower energy
prices, a significant increase is possible, which could increase our raw material and transportation costs. In addition, increased transportation costs of our suppliers and customers could be passed along to us. We may not be able to increase our
prices enough to offset these increased costs, and any increase in our prices may reduce our future customer orders, which could harm our business, financial condition and operating results.

Our share price may be volatile due to fluctuations in our operating results and other factors, including the activities and operating
results of our customers or competitors, any of which could cause our share price to decline.

Our revenues, expenses and results
of operations have fluctuated in the past and are likely to do so in the future from quarter to quarter and year to year due to the risk factors described in this section and elsewhere in this Quarterly Report on Form
10-Q. In addition to market and industry factors, the price and trading volume of our ordinary shares may fluctuate in response to a number of events and factors relating to us, our competitors, our customers
and the markets we serve, many of which are beyond our control. Factors such as variations in our total revenues, earnings and cash flow, announcements of new investments or acquisitions, changes in our pricing practices or those of our competitors,
commencement or outcome of litigation, sales of ordinary shares by us or our principal shareholders, fluctuations in market prices for our services and general market conditions could cause the market price of our ordinary shares to change
substantially. Any of these factors may result in large and sudden changes in the volume and price at which our ordinary shares trade. Among other things, volatility and weakness in our share price could mean that investors may not be able to sell
their shares at or above the prices they paid. Volatility and weakness could also impair our ability in the future to offer our ordinary shares or convertible securities as a source of additional capital and/or as consideration in the acquisition of
other businesses.

Furthermore, the stock markets have experienced extreme price and volume fluctuations that have affected and continue
to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general
economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may cause the market price of our ordinary shares to decline. In the past, companies that have experienced volatility in the
market price of their stock have been subject to securities class action litigation. We may be the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our managements
attention from other business concerns, which could seriously harm our business.

If securities or industry analysts do not publish
research or if they publish misleading or unfavorable research about our business, the market price and trading volume of our ordinary shares could decline.

The trading market for our ordinary shares depends in part on the research and reports that securities or industry analysts publish about us or
our business. If securities or industry analysts stop covering us, or if too few analysts cover us, the market price of our ordinary shares could be adversely impacted. If one or more of the analysts who covers us downgrades our ordinary shares or
publishes misleading or unfavorable research about our business, our market price would likely decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our ordinary shares could
decrease, which could cause the market price or trading volume of our ordinary shares to decline.

We may become a passive foreign
investment company, which could result in adverse U.S. tax consequences to U.S. investors.

Based upon estimates of the value of
our assets, which are based in part on the trading price of our ordinary shares, we do not expect to be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for the taxable year 2017 or for the foreseeable future.
However, despite our expectations, we cannot assure you that we will not be a PFIC for the taxable year 2017 or any future year because our PFIC status is determined at the end of each year and depends on the composition of our income and assets
during such year. If we are a PFIC, our U.S. investors will be subject to increased tax liabilities under U.S. tax laws and regulations and to burdensome reporting requirements.

Certain provisions in our constitutional documents may discourage our acquisition by a third party, which could limit your opportunity
to sell shares at a premium.

Our constitutional documents include provisions that could limit the ability of others to acquire
control of us, modify our structure or cause us to engage in change-of-control transactions, including, among other things, provisions that:



establish a classified board of directors;



prohibit our shareholders from calling meetings or acting by written consent in lieu of a meeting;



limit the ability of our shareholders to propose actions at duly convened meetings; and

These provisions could have the effect of depriving you of an opportunity to sell your ordinary
shares at a premium over prevailing market prices by discouraging third parties from seeking to acquire control of us in a tender offer or similar transaction.

Our shareholders may face difficulties in protecting their interests because we are incorporated under Cayman Islands law.

Our corporate affairs are governed by our amended and restated memorandum and articles of association (MOA), by the Companies Law
(as amended) of the Cayman Islands and the common law of the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under the laws of the Cayman Islands are not as clearly established under statutes or
judicial precedent as in jurisdictions in the United States. Therefore, you may have more difficulty in protecting your interests than would shareholders of a corporation incorporated in a jurisdiction in the United States, due to the comparatively
less developed nature of Cayman Islands law in this area.

The Companies Law permits mergers and consolidations between Cayman Islands
companies and between Cayman Islands companies and non-Cayman Islands companies. Dissenting shareholders have the right to be paid the fair value of their shares (which, if not agreed between the parties, will
be determined by the Cayman Islands court) if they follow the required procedures, subject to certain exceptions. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

In addition, there are statutory provisions that facilitate the reconstruction and amalgamation of companies, provided that the arrangement is
approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must in addition represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that
are present and voting either in person or by proxy at a meeting convened for that purpose. The convening of the meeting and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. A dissenting shareholder has the
right to express to the court the view that the transaction ought not to be approved.

When a takeover offer is made and accepted by
holders of 90.0% of the shares within four months, the offeror may, within a two-month period, require the holders of the remaining shares to transfer such shares on the terms of the offer. An objection can be
made to the Grand Court of the Cayman Islands but this is unlikely to succeed unless there is evidence of fraud, bad faith or collusion.

If the arrangement and reconstruction is thus approved, the dissenting shareholder would have no rights comparable to appraisal rights, which
would otherwise ordinarily be available to dissenting shareholders of a corporation incorporated in a jurisdiction in the United States, providing rights to receive payment in cash for the judicially determined value of the shares. This may make it
more difficult for you to assess the value of any consideration you may receive in a merger or consolidation or to require that the offeror give you additional consideration if you believe the consideration offered is insufficient.

Shareholders of Cayman Islands exempted companies have no general rights under Cayman Islands law to inspect corporate records and accounts or
to obtain copies of lists of shareholders. Our directors have discretion under our MOA to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to
our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

Subject to limited exceptions, under Cayman Islands law, a minority shareholder may not bring a derivative action against the board of
directors.

Certain judgments obtained against us by our shareholders may not be enforceable.

The Cayman Islands Parent is a Cayman Islands exempted company and substantially all of our assets are located outside of the United States.
Given our domicile and the location of our assets, it may be difficult to enforce in U.S. courts judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities laws against us. In addition, there is
uncertainty as to whether the courts of the Cayman Islands, Thailand or the PRC would recognize or enforce judgments of U.S. courts against us predicated upon the civil liability provisions of the securities laws of the United States or any state.
In particular, a judgment in a U.S. court would not be recognized and accepted by Thai courts without a re-trial or examination of the merits of the case. In addition, there is uncertainty as to whether such
Cayman Islands, Thai or PRC courts would be competent to hear original actions brought in the Cayman Islands, Thailand or the PRC against us predicated upon the securities laws of the United States or any state.

Purchases of Equity
Securities by the Issuer and Affiliated Purchasers

On August 21, 2017, we announced that our board of directors had approved
a share repurchase program to permit us to repurchase up to $30.0 million worth of our issued and outstanding ordinary shares in the open market in accordance with applicable rules and regulations, at such time and such prices as management may
decide. In February 2018, our board of directors approved an increase of $30.0 million to this share repurchase authorization, bringing the aggregate authorization to $60.0 million. The repurchased shares will be held as treasury stock. As
of March 30, 2018, we had a remaining authorization to purchase up to an additional $37.6 million worth of our ordinary shares.

The following table summarizes share repurchase activity for the three months ended March 30, 2018:

Period

Total Number ofShares Purchased

Average PricePaidPer Share

Total Number ofShares Purchased As Partof Publicly AnnouncedProgram

Maximum ApproximateDollar Value of SharesThat May Yet Be PurchasedUnder the Program

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized, on May 8, 2018.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;

4.

The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating
to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and

5.

The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the
registrants board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record,
process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.

Date: May 8, 2018

/s/ SEAMUS GRADY

Seamus Grady

Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Toh-Seng Ng, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of Fabrinet;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this report;

4.

The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to
the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of
the period covered by this report based on such evaluation; and

(d)

Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter
in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and

5.

The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the
registrants board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record,
process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.

I, Seamus Grady, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
that the Quarterly Report on Form 10-Q of Fabrinet for the fiscal quarter ended March 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934
and that information contained in this Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of Fabrinet.

By:

/s/ SEAMUSGRADY

Date: May 8, 2018

Name:

Seamus Grady

Title:

Chief Executive Officer (Principal Executive Officer)

I, Toh-Seng Ng, certify, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Fabrinet for the fiscal quarter ended March 30, 2018 fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this Quarterly Report on Form 10-Q fairly presents in all material respects
the financial condition and
results of operations of Fabrinet.